KnowledgeNet sells investments in 2 subsidiaries for SAR 25.6M

KnowledgeNet Co. announced the signing of an acquisition agreement by the Saudi Technology Fund for a 100% stake in Takharej for Information Technology, one of its subsidiaries (indirectly owned at 93.10%), which was established by KnowledgeNet using its technologies.
 

In reference to the Memorandum of Understanding signed between KnowledgeNet and Bayt Al-Namo Financial Co. on June 8, 2024, with the aim of acquiring the subsidiaries established by KnowledgeNet using its technologies and in which it holds stakes, a second agreement was signed today, Nov. 25, 2024, with the Saudi Technology Fund. This agreement pertains to the acquisition of a 100% stake in Takharej for Information Technology (87.40% owned by Solutions Co. and 12.60% by Amwal Co.) for a total value of SAR 13.25 million. KnowledgeNet holds an indirect stake of 93.10% in the company, through a 99.9% ownership in Solutions Co. and a 45% stake in Amwal Co. The payment will be made in exchange for 1.2 million units in the Saudi Technology Fund, valued at SAR 11.98 million.
 

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The book value of the asset is SAR 43,700, representing 93.10% of the capital of Takharej for Information Technology, according to the company.
 

Under the terms of the deal, KnowledgNet will own 1.2 million units in the Saudi Technology Fund. Any gains from this transaction will be reflected in the consolidated profit or loss statement, which is expected to have a positive impact on KnowledgeNet's projected profits for 2024.
 

In a separate statement, KnowledgeNet announced the signing of an acquisition agreement by the Saudi Technology Fund for a 100% stake in Multi Financial Technology Co., one of its subsidiaries (indirectly owned at 53.40%), which was established by KnowledgeNet using its technologies.

In reference to the MoU signed between KnowledgeNet and Bayt Alnomow Capital Co. on June 8, 2024, with the aim of acquiring the subsidiaries established by KnowledgeNet using its technologies and in which it holds stakes, a third agreement was signed today, November 25, 2024, with the Saudi Technology Fund for the acquisition of a 100% stake in Multi Financial Technology Co. (17.50% owned by Takharuj Information Technology Co. and 82.50% owned by Amwal Information Technology Co.) for a total value of SAR 23.250 million. KnowledgeNet holds an indirect stake of 53.40% in the company (through a 93% ownership in Takharuj Information Technology Co. and a 45% stake in Amwal Information Technology Co.). The payment will be made in exchange for 1.36 million units in the Saudi Technology Fund, valued at SAR 13.59 million, the company added.
 

The book value of the asset is SAR 213,600, representing 53.40% of the capital of Multi Financial Technology Co.
 

Under the terms of the deal, KnowledgeNet will own 1.36 million units in the Saudi Technology Fund. Any gains from this transaction will be reflected in the consolidated profit or loss statement, which is expected to have a positive impact on KnowledgeNet's projected profits for 2024.
 

The company also indicated that the parties of the transaction are KnowledgeNet, Saudi Technology Fund, Multi Financial Technology Co., Takharuj Information Technology Co., Al-Halloul Faniye for Financial Technology, Amwal Information Technology Co. and Watar Al-A'mal Trading Co.
 

Multi Financial Technology Co. is one of KnowledgeNet's subsidiaries (indirectly owned at 53.40%) that operates in the field of application development, custom software design and programming, as well as biotechnology solutions.
 

The book value of the asset is SAR 213,600, representing 53.40% of the capital of Multi Financial Technology Co.

This is considered a strategic step aligned with KnowledgeNet's long-term goals to maximize the return on its proprietary software used by emerging companies, said the company. It added that the proceeds will be used to support its expansion and growth strategy, aiming to maximize the overall return for shareholders, which will be achieved by retaining the investment to optimize returns and using it as a source of cash flow to finance and support KnowledgeNet's expansion activities.

According to data available to Argaam, the company signed on Nov. 14 the first contract with the Saudi Technology Fund to sell a 92% stake in KnowledgeNet Real Estate Co. for a total of SAR 16.75 million. KnowledgeNet, which owns 50% of KnowledgeNet Real Estate’s capital, will receive 837,500 units in the Saudi Technology Fund, valued at SAR 8.38 million, in return.