Saudi Industrial Services Company (Sisco) is acquiring a 31.7 per cent stake in Dubai-based Green Dome to boost its investments in the logistics sector.
The company’s board approved the plan to buy the stake in logistics investment fund Green Dome from its subsidiary Saudi Trade and Export Development Company, also known as LogiPoint, through a share swap deal valued at 44.5 million Saudi riyals ($11.86m), Sisco said in a statement on Monday to the Tadawul stock exchange, where its shares are traded.
Sisco is an investment holding company with a diversified portfolio of assets spanning sectors such as ports, logistics and water.
“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 realise significant synergies for both Sisco and Green Dome,” said Mohammed Al Mudarres, chief executive of Sisco.
The logistics sector continues to perform well, driven by higher demand from e-commerce companies as digital transactions remain high because of the coronavirus pandemic.
The UAE is ranked among the top three logistics centres in emerging markets as the country continues to boost its digital infrastructure and develop its business environment, according to a survey by logistics company Agility.
Green Dome invests in companies that are "positioned" to benefit from the growing demand for integrated logistics in the wider GCC region.
Sisco also said on Monday that it continues to make "good progress" on the implementation of its recently updated five-year strategy for growth.
In the last 12 months, the company has partly divested its direct equity stake in the Red Sea Gateway Terminal Company; its subsidiary LogiPoint has expanded; and it has awarded a sewage water treatment plant contract in the water solutions segment.
"The board and management are currently reviewing a number of investment opportunities both locally and internationally and will provide further updates on these investments in due course," Sisco said.
The acquisition is subject to approval by Sisco's shareholders and the impact of the transaction will be realised in the company's second-quarter financial statement, it said.
