Riyadh – Mubasher: Saudi Industrial Services Company (SISCO) has sold a 21.2% direct equity stake in Red Sea Gateway Terminal Limited (RSGT) to Saudi Arabia’s Public Investment Fund (PIF) and COSCO Shipping Ports Limited, according to a press release on Thursday.

The value of the sale transaction stood at SAR 556.5 million. The total gross proceeds, which application is currently under review, will support SISCO’s strategic objectives of enhancing shareholder returns and optimising its portfolio.

The sale transaction also involved divesting the 4% equity stake of SISCO’s 76%-owned subsidiary Saudi Trade and Export Development Company Limited (LogiPoint) in RSGT for SAR 105 million.

SISCO added that the transaction included the sale of 14.8% equity stake of other minority shareholders of RSGT to both PIF and COSCO Shipping on a pro-rata basis.

The financial impact of the sale transaction and the final payment of related costs will be reflected in SISCO’s income statements for the third quarter (Q2) of 2021.

CEO of SISCO, Mohammed Al Mudarres, said: “Our strategic priorities remain focused on expanding SISCO’s presence in the core segments of ports, logistics, and water, where significant potential earnings opportunities exist, and where group management can provide oversight on operational and growth strategies.”