Red Sea buys 51% of First Fix for SAR 544.2 mln

Red Sea International Co. acquired a 51% stake in Fundamental Installation for Electric Work Co. Ltd. (First Fix) for a cash consideration of SAR 544.2 million.

In a statement to Tadawul, Red Sea said it will pay a total of SAR 250 million to the sellers in cash, in proportion. Further, a deferred consideration of SAR 294.2 million will be settled within four months from the signing date, subject to satisfaction of certain conditions.

Red Sea will retain the option to capitalize the debt represented by the deferred consideration, it added, noting that any similar transaction will be subject to applicable regulatory and corporate approvals.

The acquisition will be funded through bank loans.

The sellers are MSB Holding Co., a limited liability company incorporated in Saudi Arabia, Fares Esmat Al Saady, and Ziad Jan Alsayegh.

Source : Argaam