SISCO stake in RSGT cut to 39.4%, acquisition to be finalized in one phase: CEO

Mohammed Mudarres Chief Executive Officer at SISCO

Saudi Industrial Services Co.’s (SISCO) 60.6% stake – direct and indirect ownership – in Red Sea Gateway Terminal Ltd. (RSGT) will be cut to 39.4%, after finalizing the stake sale deal with the Public Investment Fund (PIF) and COSCO SHIPPING Ports Ltd. (CSPL), chief executive officer Mohammed Mudarres told Argaam in an interview.

“The deal will be completed in one phase,” said Mudarres, adding that SISCO will continue to consolidate RSGT, through its remaining ownership in the company.

RSGT accounts for approximately 63% of SISCO gross revenue and profit, he indicated.

The landmark transaction underpins SISCO’s fruitful strategy of strengthening and growing its portfolio businesses through strategic alliances and partnerships in order to enhance overall shareholder value. It further demonstrates the strength and attractiveness of SISCO’s portfolio and long-standing strategy, both commercially and financially, and highlights the market’s confidence in the Kingdom’s investment climate and in one of SISCO’s key assets.

“It is too early to speak of the PIF’s potential investment strategy for RSGT, as the company’s investment committee will consider all investment plans as regards the transaction, which will be unveiled in due course,” he added.

SISCO announced on Jan. 27, 2021, that it signed separate sale and purchase agreements with the Public Investment Fund (PIF) and COSCO SHIPPING Ports Ltd. (CSPL) – through its wholly-owned subsidiary Sound Joyce Enterprises Ltd. – to sell SISCO’s 21.2% direct equity stake in its subsidiary Red Sea Gateway Terminal Ltd. (RSGT) for a total of SAR 556.5 million, Argaam reported.