Saudi Agricultural and Livestock Investment Company “SALIC,” a subsidiary of the Saudi sovereign fund, has agreed to sell its entire stake in Saudi Fisheries Company “Alasmak” (6050).
Details
Alasmak received a letter from its shareholder “SALIC,” indicating its acceptance of the binding offer to complete a special sale and purchase transaction.
SALIC will fully exit “Saudi Fisheries” by selling 15.99 million shares, representing about 40% of the company’s shares, to Abdulaziz bin Abdullah Al-Humaid for approximately SAR 122 (USD 32.5 million).
So what
Alasmak stated that the sale would be executed after obtaining regulatory approvals.
Upon completion of the transaction and transfer of shares between shareholders, there will be a change in the major shareholders of the company.
The share price of “Alasmak” sharply declined by about 10% at the start of Sunday’s trading session, reaching SAR 19.8.
Some context
Based on the value of the transaction, the sale price of “Alasmak” shares was valued at SAR 7.65 apiece, compared to the closing price of SAR 22.02 in the previous Thursday’s session.
It’s worth noting that “Abdulaziz bin Abdullah Al-Humaid” serves as the Chairman of the Qassim Chamber of Commerce and the Chairman of Raoom Trading Company (9529), which specializes in glass manufacturing.
Now what
Abdullah Al-Hamed, Head of Client Investment Advisory at GIB Capital, mentioned in an interview with “Al-Arabiya Business” that one of the implications of the transaction is that converting “Alasmak” to profitability will require significant efforts, which may not align with the main shareholder “SALIC’s” strategy.
