Logo of Saudi Advanced Industries Co. (SAIC)
Saudi Advanced Industries Co. (SAIC) signed an agreement with Saudi Arabian Military Industries (SAMI) affiliated with the Public Investment Fund (PIF) to sell its entire 10% stake in Al-Salam Aerospace Industries Co.
The sale value will be determined once the calculation of the partners' obligations under the terms of the agreement is finalized, SAIC said in a statement to Tadawul, adding the book value of its stake in Al-Salam Aerospace stands at SAR 19.52 million.
Al-Salam Aerospace operates in the field of military and civil aviation maintenance.
The sale took place as Al-Salam Aerospace’s losses exceeded its capital. In addition, the company has high obligations and it was difficult to find support from the partners.
The financial impact is expected to show in 2023, SAIC said, adding there are no related parties to the deal.
The exit aligns with SAIC’s strategy to improve its performance, review its investments, enter into promising investments and opportunities with growth and returns, and exit investments that have achieved their goals, or do not fulfil SAIC’s aspirations, the company added.
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Al-Salam Aerospace Financial Statements from 2020-2022 (SAR mln) |
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|
Year |
Revenues |
Net Losses |
|
2020 |
730.12 |
37.38 |
|
2021 |
508.30 |
174.70 |
|
2022 |
666.79 |
36.31 |
|
H1 2023 (unaudited) |
285.05 |
35.06 |
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