Batic inks MoU to acquire logistics firms

Batic Investment and Logistics Co. (BATIC) has signed a memorandum of understanding (MoU) on Aug. 29 with Abdulkadir Al Muhaidib and Sons and Himmah Group to fully acquire Al Muhaidib Land Transport Co. and Himmah Logistics Company.

Abdulkadir Al Muhaidib and Sons fully owns Al Muhaidib Land Transport and owns an 80 percent stake in Himmah Logistics, while Himmah Group owns 20 percent.

The MoU is valid until Dec. 31, BATIC said in a statement to Tadawul on Wednesday.

Al Muhaidib Land Transport is currently valued at SAR 50 million, while Himmah Logistics is worth SAR 150 million. The companies are being revalued as part of the due diligence.

Batic will complete the acquisitions through a capital increase, where it will issue shares to Abdulkadir Al Muhaidib and Sons and Himmah Group.

The deal is expected to be completed by the end of this year after obtaining all the necessary regulatory approvals.

Financial services group Swicorp has been appointed as financial advisor for this acquisition, while PricewaterhouseCoopers was hired as Batic’s financial consultant for the due diligence.

This deal has no related parties, and the company will announce any developments as they occur, the statement added.