Gas Arabian Services Co. Announces the Signing of Binding Agreements with Future Prospects for Operation and Maintenance Co. to Purchase 12.90% Equity Stake in EagleBurgmann Saudi Arabia Co. Ltd. (EBKSA) and 40% Equity Stake in TCR Arabia Co. Ltd. (TCR)
Element List | Explanation |
|---|---|
Introduction | GAS Arabian Services Co. announces that it has entered into binding agreements with Future Prospects for Operation and Maintenance Co. (one of its major shareholders), to purchase 12.90% Equity stakes in Eagle Burgmann Saudi Arabia Company Limited (EBKSA) and 40% Equity stakes in TCR Arabia Company Limited (TCR) on 25/11/2025G, corresponding to 04/06/1447H. GAS Arabian Services Co. agreed to purchase the entire 12.90% equity stake of Future Prospects for Operation and Maintenance Co. in EBKSA at a final cost of SAR 48.7m. This price reflects a 15% discount from the stake's valuation of SAR 57.3m, which was based on EBKSA's total business valuation of SAR 444.4m GAS Arabian Services Co. agreed to purchase the entire 40% equity stake of Future Prospects for Operation and Maintenance Co. in TCR at a final cost of SAR 17.1m. This price reflects a 15% discount from the stake's valuation of SAR 20.1m, which was based on TCR's total business valuation of SAR 50.3m |
Transaction Details | Signing of binding agreements with Future Prospects Company Limited (one of GAS' major shareholders), to purchase 12.90% Equity stakes in Eagle Burgmann Saudi Arabia Company Limited (EBKSA) and 40% Equity stakes in TCR Arabia Company Limited (TCR) on 25/11/2025G, corresponding to 04/06/1447H. |
Transaction Amount | EBKSA stake - SAR 48.7m and TCR stake, SAR 17.1m |
Transaction Conditions | Both transactions includes the transfer of ownership in accordance with the terms and conditions stipulated in the agreement, subject to obtaining the necessary regulatory approvals and fulfilling the customary conditions required to complete such transactions. |
Parties of the Transaction | Seller: Future Prospects for Operation and Maintenance Co. Buyer: Gas Arabian Services Co. |
Transaction Financing Method | The Transactions are to be funded through the Company’s internal resources. Payment for these transactions will be executed within 90 working days following the transfer of shares and the subsequent update of these companies' articles of association. |
Date of Entering Into The Transaction | 2025-11-25 Corresponding to 1447-06-04 |
Description of Activity of The Asset Subject of The Transaction | EBKSA - Mechanical sealing and equipment manufacturing TCR - Testing, inspection and metallurgical services |
Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | According to the audited financial statements of EBKSA, its revenues is mentioned as below (in Saudi Riyals): 2024: 164,502,978 2023: 148,038,212 2022: 126,325,559 According to the audited financial statements of TCR, its revenues is mentioned as below (in Saudi Riyals): 2024: 34,024,576 2023: 31,438,601 2022: 23,031,258 |
Transaction reasons | The purchase of these stakes aims to enhance and increase investment opportunities that are integrated with the services provided by the company. These transactions are in line with the company's growth strategy, which aims to expand its business, diversify its sources of income, and enhance its market position in the Saudi Market. |
Expected Impact of the Transaction on the Company and Its Operations | Deeper integration across manufacturing, sealing solutions, non-destructive testing (NDT), and metallurgical services. |
Related Parties | - Future Prospects for Operation and Maintenance Co. - Mr. Abdulrahman Khalid AlDabal (Chairman) - Mr. Faisal Khalid AlDabal (Vice Chairman & CEO) - Mr. Khalid Abdulrahman AlDabal (Board Member) To ensure proper governance and in implementation of rules and regulations, and due to an indirect interest in these transactions, the following Board members did not vote in the resolution concerning the transactions. - Mr. Abdulrahman Khalid AlDabal (Chairman) - Mr. Faisal Khalid AlDabal (Vice Chairman & CEO) - Mr. Khalid Abdulrahman AlDabal (Board Member) These transactions will be included among the agenda of business and contracts in which board members have an indirect interest during the upcoming General Assembly. |
Additional Information | Yaqeen Capital appointed as valuation advisor for the two Companies, and Value Capital appointed to provide an independent fairness opinion regarding the two transactions, including - but not limited to - reviewing the valuation report submitted by Yaqeen Capital. Attached the Fairness Opinion Reports provided by Value Capital. Any material developments regarding completion, or regulatory clearances will be disclosed to the market in due course. For any Enquiry, please contact Investor Relations at: P: +966 138351500 Ext:808 Email: IR@gasarabian.com |
Attached Documents |