KnowledgeNet inks deal to sell subsidiary to Saudi Technology Fund for SAR 15.4M

Logo of KnowledgeNet Co.

KnowledgeNet Co. signed a contract to sell 100% stake in Financial Technology Solutions (99.99% owned by KnowledgeNet and 0.01% by Knowledge Network for Business Services) to the Saudi Technology Fund for SAR 15.35 million.

In a statement to Tadawul, the company said that Financial Technology Solutions is one of KnowledgeNet subsidiary companies operating in the fields of information and communications, professional, scientific, and technological activities, which helps in establishing financial technology companies using the company’s products.

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The book value of the asset is SAR 999,900, representing 99.99% of the capital of Financial Technology Solutions.

Under the deal, KnowledgeNet will own 1.54 million units in the Saudi Technology Fund, and any gains from this transaction will reflect in the consolidated profit or loss statement, which will have a positive impact on the company’s expected profits for 2024.

The deal is considered a strategic step in line with KnowledgeNet’s long-term goals to maximize the return on its software used by startups, the statement added.

The proceeds will be used to support the company’s expansion and growth strategy, maximizing the overall return for shareholders, by retaining the investment to enhance returns and using it as a source of cash flow to finance and support KnowledgeNet expansion activities.

No related parties are included in the deal, the company noted.

KnowledgeNet Co. 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.

In return 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, Argaam reported.

On Nov. 25, the company signed 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.