SAIC signs SAR 200m joint venture agreement with Deutsche Gulf and secures bank facilities of SAR 150m

Saudi Advanced Industries Company signed SAR 200m joint venture agreement with Deutsche Gulf Finance, a closed joint stock company.

The agreement aims at diversifying the company’s investments; the company said in its filing to Tadawul today.

The two parties have agreed to valuate Deutsche Gulf’s shares at SAR 11 per share, SAR 10 par value plus a premium of SAR 1 per share. The premium paid will be used to enhance the company’s activities.

The deal is to be financed by the SAIC’s internal resources in addition to bank facilities.

SAIC has also signed SAR 150m Islamic Tawarruq bank facilities agreement with the Saudi Hollandi Bank.

The credit is guaranteed by Yansab’s Shares and will be used in financing some investment opportunities; the company added.

SAIC also said that the credit’s principal will be repaid at the end of the agreement’s period or according to the company’s plan while the interest is to be paid on a quarterly basis.