Batic acquires 37.8% of Smart Cities Solutions in cash

Logo of Batic Investments and Logistics Co.

Batic Investments and Logistics Co. announced completing the procedures related to the acquisition of a 35.8% stake in Smart Cities Solutions Company for Telecom and Information Technology (SCSC) from Smart Parking Holding Co., for a cash payment, according to a bourse filing today, Oct. 4.   

The company completed measures pertaining to the financial, legal, administrative and operational due diligence of Smart Cities Solutions via a third party, while other partners in the acquired entity individually waived in writing of their preemptive rights to purchase the shares sold.

Batic obtained the relevant regulatory approvals, and the deal was financed via credit facilities secured from Bank AlJazira.

The firm is still in the stage of construction and preparation of the smart parking project in the Eastern Province.

The company incurred a net loss of SAR 2.27 million for the year ended on Feb. 29, 2020. Also, it reported SAR 808,564 in revenue (from the trial operations in Q4 2020), and net loss of SAR 10.85 million for the year ended Dec. 31, 2020.

In a separate bourse filing, Batic announced the purchase of Hozoon Holding Co.’s entire ownership of 2% in SCSC capital for SAR 6 million.

Other partners in the acquired entity individually waived in writing of their preemptive rights to purchase the shares sold.

Accordingly, Batic currently owns a 37.8% stake in SCSC. The deal, which was financed via the available credit facilities, came in line with the company’s strategy that aims at boosting growth and expansions, in addition to providing logistics support to the company’s operations.

The related parties are Ahmed Al Sanie, Chairman of Batic and owner - directly and indirectly- of SCSC shares and Firas Al Bawardi, a board member at Batic and Chief Executive Officer (CEO) of JASARA, which owns 7% of SCSC capital.

The related financial impact will likely appear on the Q4 2021 results, the statement added.

Batic signed, on May 1, an agreement with Smart Parking Holding Co. for the acquisition of a 35.8% stake in Smart Cities Solutions Company for Telecom and Information Technology, for an estimated price of SAR 107.9 million, Argaam reported.

In April 2021, Batic signed a memorandum of understanding (MoU) with Smart Parking Holding Co., to acquire 34.4% of Smart Cities Solutions Co., Argaam reported.

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