Budget Saudi EGM ratifies issuing new shares to acquire AutoWorld

Logo of United International Transportation Co. (Budget Saudi)

United International Transportation Co.’s (Budget Saudi) shareholders approved raising capital by issuing new shares in order to fully acquire Al Jazira Equipment Co. Ltd. (AutoWorld).

The decision came during the extraordinary general meeting (EGM) held on June 24, the company said in a statement to Tadawul.

Acquisition Details
Method	Budget Saudi to fully acquire AutoWorld’s share capital
Consideration	Issuing new shares to AutoWorld owner
Swap factor	AutoWorld owner will receive 23.33 shares in Budget Saudi for every share owned in the former
Budget Saudi pre-acquisition capital	SAR 711.67 mln
Budget Saudi shares pre-acquisition	71.17 mln
Budget Saudi post-acquisition capital	SAR 781.67 mln
Budget Saudi shares after acquisition	78.17 mln
Total increase (in nominal value)	SAR 70 mln
Number of new shares	7 mln
Capital increase (%)	9.84%
Valuation of Budget Saudi’s shares for acquisition purpose	SAR 65.00
Total value of AutoWorld shares	SAR 455.00 mln
Budget Saudi shareholders’ post-merger stake	91.04% of capital
AutoWorld owner's post-merger stake	8.96% of capital

The capital hike will be effective upon the completion of transferring ownership of the shares of AutoWorld to Aljozoor Alrasekha Trucking Co. Ltd (Rahaal), a subsidiary owned by Budget Saudi, the statement added.

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Meanwhile, the EGM authorized the board of directors or any person authorized thereby to issue any decision or take any action that may be necessary to implement any of the decisions related to the acquisition deal.

According to data compiled by Argaam, Budget Saudi signed in August 2023 a non-binding memorandum of understanding (MoU) with the Saudi Economic and Development Holding Co. (SEDCO) to fully acquire its subsidiary, AutoWorld, by issuing shares to the subsidiary’s owner.

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