MIS obtains 6.6M units in Saudi Data Centers Fund 1

Logo of Al Moammar Information Systems Co. (MIS) 

Al Moammar Information Systems Co. (MIS) obtained today, March 31, nearly 6.6 million units in Saudi Data Centers Fund 1 at SAR 10 each, equivalent to 10% of the completed works, worth SAR 65.9 million.

For More Mergers and Acquisitions

This came in exchange for the data centers’ design and development contract. The move represents the first allotment of units under the deal, according to a filing to Tadawul.

No financial impact will be implied on MIS’ income statement as a result of securing these units, except in the case of their fair value assessment, which the company intends to conduct during the first quarter of 2024.

If the fair value assessment is undertaken, the impact on the company's financial statements will be reflected in a decrease in the accounts receivable from customers by the value of the units and their reappearance in the investment item at the same value, in addition to the impact of revaluation.

The profit margin for completed works, valued at SAR 6.6 million, was confirmed and appeared in the previous financial periods.

The company expects to obtain additional units in the fund in the coming periods, noting that any significant developments will be announced in due course.

In January 2022, MIS received an award letter from Saudi Fransi Capital on starting the business and activating their signed contracts related to the development of six data centers with capacity of 24 megawatts for SAR 1.2 billion as a first phase, according to data compiled by Argaam.