Budget Saudi EGM ratifies issuing new shares to acquire AutoWorld
Logo of United International Transportation Co. (Budget Saudi)
United International Transportation Co.’s (Budget Saudi) shareholders approved raising capital by issuing new shares in order to fully acquire Al Jazira Equipment Co. Ltd. (AutoWorld).
The decision came during the extraordinary general meeting (EGM) held on June 24, the company said in a statement to Tadawul.
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Acquisition Details |
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Method |
Budget Saudi to fully acquire AutoWorld’s share capital |
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Consideration |
Issuing new shares to AutoWorld owner |
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Swap factor |
AutoWorld owner will receive 23.33 shares in Budget Saudi for every share owned in the former |
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Budget Saudi pre-acquisition capital |
SAR 711.67 mln |
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Budget Saudi shares pre-acquisition |
71.17 mln |
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Budget Saudi post-acquisition capital |
SAR 781.67 mln |
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Budget Saudi shares after acquisition |
78.17 mln |
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Total increase (in nominal value) |
SAR 70 mln |
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Number of new shares |
7 mln |
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Capital increase (%) |
9.84% |
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Valuation of Budget Saudi’s shares for acquisition purpose |
SAR 65.00 |
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Total value of AutoWorld shares |
SAR 455.00 mln |
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Budget Saudi shareholders’ post-merger stake |
91.04% of capital |
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AutoWorld owner's post-merger stake |
8.96% of capital |
The capital hike will be effective upon the completion of transferring ownership of the shares of AutoWorld to Aljozoor Alrasekha Trucking Co. Ltd (Rahaal), a subsidiary owned by Budget Saudi, the statement added.
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Meanwhile, the EGM authorized the board of directors or any person authorized thereby to issue any decision or take any action that may be necessary to implement any of the decisions related to the acquisition deal.
According to data compiled by Argaam, Budget Saudi signed in August 2023 a non-binding memorandum of understanding (MoU) with the Saudi Economic and Development Holding Co. (SEDCO) to fully acquire its subsidiary, AutoWorld, by issuing shares to the subsidiary’s owner.