The acquisition is in line with SISCO’s five-year strategy to expand in logistics services
Saudi Industrial Services Company, Saudi Arabia’s leading strategic investment company in the ports, logistics, and water sectors, announces that its Board of Directors has approved the acquisition of a 31.7% direct equity stake in Green Dome Investments (Green Dome) from its subsidiary Saudi Trade & Export Development Company (LogiPoint).
The acquisition, which will take place at fair value for a total consideration of SAR 44.5mn (US$ 11.86mn), is subject to shareholder approval at SISCO’s Annual General Meeting.
Headquartered in Dubai, UAE, Green Dome is a logistics investment fund that invests in companies positioned to benefit from the growing demand for integrated logistics in the wider GCC region. Green Dome’s buy-and-build strategy targets companies that are profitable, well-managed and have a demonstrable track record of success in order to generate economies of scale in the logistics services market.
The acquisition also enables SISCO’s subsidiary LogiPoint to focus on its core offering as a leading logistics real estate developer and operator.
“Integrating Green Dome directly into the SISCO group supports our five-year strategy to deepen our penetration of the logistics services space and will enable us to unlock and realize significant synergies for both SISCO and Green Dome,” explained Mohammed Al-Mudarres, CEO, SISCO.
Key milestones during the last twelve months, in support of delivering on the strategy, have included the part divestment of the Group’s direct equity stake in the Red Sea Gateway Terminal Company; expansion by subsidiary LogiPoint; and important independent sewage water treatment plant contract awards in the water solutions segment.