https://arab.news/r5scu
- Deal comes amid flurry of investment activity in Saudi ports sector
RIYADH: Saudi Arabia's Public Investment Fund has completed the purchase of a strategic stake in the Red Sea Gateway Terminal, the flagship facility at Jeddah Islamic Port.
Saudi Industrial Services Company SISCO raised SR556.5 million ($148.2 million) from the sale of its minority stake in the Red Sea Gateway Terminal.
It sold the 21.2 percent stake to the Public Investment Fund and COSCO SHIPPING Ports Limited, it said in a stock exchange filing.
"This investment comes in line with the investment fund strategy, which focuses on 13 strategic sectors, including the transport and logistics sector, in support of the economic transformation efforts in the Kingdom within the SaudiVision 2030," the PIF said in a tweet.
The overall deal involved the sale of SISCO’s 21.2 percent direct equity stake in the terminal along with sale by one of its units of a 4 percent direct equity stake.
Other minority shareholders sold their 14.8 percent equity stake to both PIF and CSPL on a pro-rata basis, the statement said.
It comes amid a flurry of investment activity in the ports sector of Saudi Arabia and the wider Gulf region.
The transaction implies an enterprise value for the terminal of some SR3.3 billion, SISCO said.
JPMorgan was financial adviser on the deal while Abdulaziz Alajlan & Partners and Baker McKenzie provided legal counsel.