Aslak eyes investment in promising companies to maximize returns: CEO

Aslak CEO Nabil Al-Amir

United Wire Factories Co. (Aslak) is mainly aiming to acquire varying stakes in promising companies to maximize financial returns for the firm and its shareholders, CEO Nabil Al-Amir told Argaam in a phone call.

He further added that options are available in all sectors.

Signing of a non-binding memorandum of understanding (MoU) with Thamar Nutrition and Subsistence Co. comes in line with the company's strategy that was approved in early 2020, the CEO noted.

He indicated that the strategy aims to explore investment opportunities in different sectors through utilizing the available financial resources and liquidity as well as the company's strength and competitive financial position.

The MoU is to acquire a stake to be defined later after conducting the financial and legal due diligence.

Further, the top executive stressed that Aslak looks at acquisitions with a purely investment view, without being restricted to its main activities. This accordingly opens wide horizons to boost shareholders' equity and enhance their investments in the company.

This policy also aims to mitigate the risks resulting from the impact of stagnation due to economic conditions in the construction sector.

The food and subsistence sector is promising and expandable as it is correlated to population growth and change in consumption pattern of the Saudi society during the COVID-19 pandemic and its aftermath, including dependence on fast food, spread of delivery services and development of ordering and payment apps, Al-Amir said.

He added that the cable producer appreciates the unlimited government support and various incentives that support investment in several fields, which motivates it to capitalize on the available opportunities at this economically prosperous stage.

The Tadawul-listed firm explored several investment opportunities, out of which some are still under study and the others were disregarded due to lack of visibility.

Aslak signed, on Oct. 21, a MoU with Thamar Nutrition to potentially acquire a stake in the latter, upon reaching a final agreement between the two parties, according to data available with Argaam.