SAPTCO shareholders approve dividend freeze for 2022

One of SAPTCO buses 

Saudi Public Transport Co.’s (SAPTCO) shareholders approved the board’s proposal to withhold dividends for 2022, during the ordinary general meeting (OGM) held on May 22, according to a statement to Tadawul.

Shareholders also endorsed the business contracts between SAPTCO and Digital Mobility Solutions Co. for Investments, a wholly owned subsidiary of SAPTCO, which comprised a payment of SAR 99.2 million to support the unit’s working capital.

The deal came within the usual business and without any preferential conditions.

However, it has related parties, namely, SAPTCO Chairman Khalid Almudaifer is also Chairman of board at Digital Mobility Solutions; Khalid Alhogail and Abdullah Alsaleh are board members in both companies; and Ahmed AlJohani, CEO of Specialized Mobility Solutions, is Executive Vice President of Business at SAPTCO.

Shareholders also approved the business contracts signed with Saudi Emirati Co. (SEITCO), a 50%-owned unit by SAPTCO.

The deal came within the usual business and without any preferential conditions, the statement said.

Khalid bin Abdullah Alhogail is a related party as he is the Chairman of SEITCO board of directors.

The contract included services provided to SEITCO in 2022, including a contract to rent an accommodation facility and a parking space for SEITCO’s buses in Al-Hair Garage, as of Aug. 17, 2022, for SAR 4.3 million.

It also includes selling 192 used buses and their spare parts for SAR 13.2 million, and providing SAR 9.7 million in cash to purchase buses and support the working capital.

In February, SAPTCO’s board of directors recommended to withhold dividends for 2022, due to the company’s accumulated losses as of Dec. 31, 2022, data compiled with Argaam showed.