KnowledgeNet sells stake in subsidiary for SAR 8.37M

Logo of Knowledge Net Co. 

KnowledgeNet Co. signed on Nov. 14 the first contract with the Saudi Technology Fund to sell a 92% stake in KnowledgeNet Real Estate Co. for a total of SAR 16.75 million.

KnowledgeNet, which owns 50% of KnowledgeNet Real Estate’s capital, will receive 837,500 units in the Saudi Technology Fund, valued at SAR 8.38 million, in return, according to a statement to Tadawul.

Any gains from this transaction will be reflected in the consolidated profit and loss statement, which will have a positive impact on KnowledgeNet expected earnings for 2024.

The deal will have a positive impact on the company's profits in the short term. In the medium term, the effect will be directly aligned with the performance of the Saudi Technology Fund, the statement added.

The deal aims to secure a portion of the profits from KnowledgeNet innovative technology sales activities, as well as to ensure faster growth opportunities by integrating into an entity like the Saudi Technology Fund, which facilitates financing for its expansion.

The proceeds will be used to support KnowledgeNet expansion and growth strategy, maximizing the overall return for shareholders. This will be achieved by retaining the investment to optimize returns and using it as a source of cash flow to finance or support KnowledgeNet expansion activities.

No related parties are included in the deal, the statement further indicated.