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The Saudi Tadawul-listed GAS Arabian Services Co. (GAS) is buying stakes in two companies for a collective investment of 65.8 million riyals ($17.5 million).
GAS will purchase a 12.9% equity stake in Eagle Burgmann Saudi Arabia Company Limited (EBKSA) from one of its biggest shareholders, Future Prospects for Operation and Maintenance Co., at SAR 48.7 million. The price reflects a 15% discount from the stake’s valuation of SAR 57.3 million, which was based on the mechanical sealing and equipment manufacturer’s total valuation of SAR 444.4 million.
GAS, a technical solutions provider for the oil and gas sector, will also buy the entire 40% equity stake Future Prospects holds in TCR at SAR 17.1 million. This price also reflects a 15% discount from the stake’s valuation of SAR 20.1 million, based on the testing, inspection and metallurgical services company’s total valuation of SAR 50.3 million.
The transactions are expected to help its expansion in Saudi and will be funded through GAS’ internal resources.
Yaqeen Capital was the valuation advisor for the two companies, and Value Capital was independent advisor on the transactions.
(Writing by Bindu Rai, editing by Seban Scaria)
