Riyadh – Mubasher: Saudi Automotive Services Company (SASCO) on Monday announced that its subsidiary Investments and Equipment Company has raised its stake in Middle East Battery Company (MEBCO).
The transaction, which raises Investments and Equipment Company’s stake in MEBCO to 12.79% from 7.94%, is valued at SAR 21.825 million ($5.82 million).
This sum will be paid in September “through the company's own resources and banking facilities signed with a local bank”, SASCO said in a statement to the Saudi Stock Exchange (Tadawul).
SASCO expects the financial impact of this transaction to start in the fourth quarter of 2018.
With a large market share in Saudi Arabia, the Middle East, and Africa, MEBCO is a leader in the production of Ac Delco batteries.
Through this investment, SASCO aims to diversify its investments in companies, whose services complement the automotive sector. It also aims to bolster its profitability through the periodic dividends received from MEBCO.
SASCO closed Monday down 1.06% at SAR 15.