Saudi PIF, COSCO buy 21.2% stake in Red Sea Gateway Terminal

Saudi Industrial Services Co will receive gross proceeds of $148mln for the deal

  
Saudi traders monitor stock information at the Saudi stock market in Riyadh, Saudi Arabia August 25, 2020. Image used for illustrative purpose

Saudi traders monitor stock information at the Saudi stock market in Riyadh, Saudi Arabia August 25, 2020. Image used for illustrative purpose

REUTERS/Ahmed Yosri

DUBAI - The Public Investment Fund, Saudi Arabia's sovereign wealth fund, and COSCO SHIPPING Ports Ltd have completed a deal to buy a combined 21.2% stake in Red Sea Gateway Terminal Ltd from Saudi Industrial Services Co (SISCO).

SISCO will receive gross proceeds of 556.5 million riyals ($148 million) for the deal, it said in a statement.

The proceeds will support the company’s strategic objectives of enhancing shareholder returns and optimising its portfolio, it said.

LogiPoint also divested its 4% direct equity stake in the terminal and will receive gross proceeds of 105 million riyals, it said.

JPMorgan acted as financial adviser on the transaction and Abdulaziz Alajlan & Partners in association with Baker McKenzie Limited acted as legal counsel.

($1 = 3.7504 riyals)

(Reporting by Saeed Azhar; editing by Jason Neely) ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))


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