SASCO establishes a new subsidiary with a capital of SAR 500 thousand and liquidates the Saudi Australian Company

The Board of Directors of Saudi Automotive Services Co. (SASCO) approved establishing “SASCO Franchising Company”, a limited liability subsidiary, with a capital of SAR 500,000.
 

SASCO will own 99% of the new company with the remaining 1% owned by SASCO’s affiliate, Automotive & Equipment Investment Co.
 

SASCO Franchising specializes in granting franchise rights to operate SASCO gas stations and Nakhla Grocery Stores; SASCO said in a filing to Tadawul today emphasizing that the new company will be financed from its internal resources.
 

SASCO added that the purpose of the new company is to increase revenue and improve profitability.
 

The board also decided to liquidate its 70%-owned Saudi Australian Co. for High Maintenance because of registration difficulties.

SASCO said that it will sign an agreement with the Australian partner to liquidate the subsidiary.

According to Argaam; SASCO announced in January, 2012 completing the procedures of signing a contract to establish a firm specialized in vehicle maintenance and services with nearly SAR 3.75m capital.