GASCO signs deal to acquire 55% of Best Gas Carrier

GASCO headquarters

National Gas and Industrialization Co. (GASCO) signed on Feb 15 a share purchase agreement with Mohammed bin Manahi bin Muneer Albuqami to acquire 55% ownership in Best Gas Carrier Co., according to a bourse statement.

The transaction was valued at SAR 29.12 million, and included the purchase price and the capital injection in Best Gas. The funds will come from GASCO's resources and cash flows.

The deal was signed after completing the due diligence procedures through the company’s financial and legal advisors, GASCO said.

The agreement does not mean the completion of the deal, which is subject to approvals from the General Authority for Competition (GAC) and other regulatory authorities. GASCO will announce the completion of the transaction or any other material developments in due course, the statement noted.

The financial impact will be determined after the completion of the transaction, GASCO said, adding that there are no related parties.

The acquisition deal is in line with GASCO’s strategy and aim to be the leading company in providing safe, reliable gas solutions with the best quality for our customers; to provide the best services in the liquefied petroleum gas market Saudi Arabia; and to work in a competitive market that achieves a high level of customer satisfaction.

Best Gas is engaged in purchasing liquefied petroleum gas and empty gas cylinders and their parts from GASCO, and reselling them to the end user.

The company's revenues amounted to SAR 24.24 million, SAR 39.13 million and SAR 39.9 million in 2019, 2020 and 2021 (unaudited), respectively.

The net profit stood SAR 600,410, SAR 5.08 million, and SAR 5.55 million in 2019, 2020 and 2021 (unaudited), respectively.

The following table illustrates the revenues and profits of Best Gas Carrier Co. for the period 2019-2021:

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