SISCO to cut stake in RSGT to 36.36% on sale deal completion with PIF, CSPL

Saudi Industrial Services Co. (SISCO) said that its direct and indirect share stake in Red Sea Gateway Terminal Ltd. (RSGT) will be cut from 60.6% to 36.36%, following the sale and purchase agreements with the Public Investment Fund (PIF) and COSCO SHIPPING Ports Ltd. (CSPL).

The financial impact will be reflected before end of 2021, the company added in a bourse statement.

The company’s board of directors, through the investment committee, will study several options to utilize the proceeds from the transaction, with the ultimate objective of maximizing shareholders returns, the statement added.

Any updates regarding the matter will be announced on due time.

Earlier this week, SISCO signed separate sale and purchase agreements with the PIF and CSPL – through its wholly-owned subsidiary Sound Joyce Enterprises Ltd. – to sell SISCO’s 21.2% direct equity stake in RSGT for a total of SAR 556.5 million, according to data compiled by Argaam.