Logo of United International Transportation Co. (Budget Saudi)
United International Transportation Co.’s (Budget Saudi) shareholders will vote on the board of directors’ recommendation to raise capital by issuing new shares, for the purpose of fully acquiring Al Jazira Equipment Co. Ltd. (AutoWorld).
According to a statement on Tadawul, the company will convene the extraordinary general meeting (EGM) on June 24.
Acquisition Details
Method
Budget Saudi to fully acquire AutoWorld
Consideration
Issuance of new shares to AutoWorld owner
Swap Factor
23.33 shares in Budget Saudi for every share owned in AutoWorld
Budget Saudi Capital Pre-Acquisition
SAR 711.67 mln
Budget Saudi Shares Pre-Acquisition
71.17 mln
Budget Saudi Capital Post-Acquisition
SAR 781.67 mln
Budget Saudi Shares Post-Acquisition
78.17 mln
Total Increase in Nominal Value
SAR 70 mln
No. of New Shares
7 mln
Ratio of Increase
9.84%
Budget Saudi Stock Value for Acquisition Purpose
SAR 65
Total Value of Autoworld Shares
SAR 455 mln
Stake of Budget Saudi Shareholders Post-Merger
91.04% of capital
Stake of Autoworld Owner Post-Merger
8.96% of capital
For more news and details on M&As
The statement clarified that the effective date of capital hike will follow the completion of transferring the AutoWorld shares to Aljozoor Alrasekha Trucking Co. (Rahaal), a subsidiary of Budget Saudi.
In August 2023, Budget Saudi signed a non-binding memorandum of understanding (MoU) with SEDCO to fully acquire the latter’s subsidiary, AutoWorld, by issuing shares to the subsidiary owner, Argaam reported earlier.
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