Riyadh – Mubasher: The Saudi Public Investment Fund (PIF) and COSCO SHIPPING Ports Limited (CSPL) signed separate sale and purchase agreements (SPA) to acquire Saudi Industrial Services Company’s (SISCO) 21.2% direct equity stake in its subsidiary, Red Sea Gateway Terminal Limited (RSGT), for SAR 556.5 million.

The transaction implies an enterprise value for RSGT of SAR 3.3 billion, SISCO said in a bourse statement on Wednesday.

Upon completion of the transaction, PIF and CSPL will own a combined 40% equity stake (respectively 20% each) by acquiring SISCO’s 21.2% direct equity stake and 18.8% equity stake of RSGT’s other minority shareholders, on a pro rata basis.

SISCO will continue to consolidate, from an accounting perspective, RSGT through its remaining ownership in the company.

This landmark deal reflects the strength and attractiveness of SISCO’s portfolio and strategy, both commercially and financially, and will help the company diversify and optimise its portfolio.

For RSGT, the strategic partnership with PIF and CSPL will accelerate its growth and expansion plans.

The transaction is expected to complete in the first half (H1) of 2021, subject to certain agreed-upon contractual conditions.