Sasco subsidiary edges closer to acquiring 70% stake in Tadbeer Recruitment

M&A WATCH-

Sasco unit signs definitive agreement for stake in Saudi labor agency Tadbeer: Tadawul-listedSaudi Automotive Services (Sasco) subsidiary Investment and Equipment inked a definitive agreement to acquire 70% of local labor agency Tadbeer Recruitment, after completing due diligence, according to a filing to the exchange. Sasco has also lined up initial approval to upgrade Tadbeer’s stock to class A from class B. The Sasco subsidiary had initially signed an MoU for the acquisition in August 2024, which was extended for an additional three months in November to complete procedural requirements.

SOUND SMART- Class A and class B shares are two different types of stocks that carry different voting rights, availability and value. Class A stocks typically offer greater voting power granting holders a stronger say in company decisions. These shares are usually given to executives, management, founders or key stakeholders to retain control over the company. In some cases, one class A stock can be converted to multiple class B stocks, making them more valuable.

Sasco will tap into its own credit facilities to finance the SAR 85 mn transaction, which plays into the company’s broader plans to diversify its investment portfolio and enhance service integration across its subsidiaries, according to an earlier disclosure to Tadawul.

ADVISORS- Sasco appointed Sultan Al Shubaili to conduct a fair-value study for Tadbeer.

INFRASTRUCTURE-

Acwa Power consortium awarded desalination project in Azerbaijan: A consortium of homegrown renewables giant Acwa Power and Turkish firm IC İÇTAŞ İNŞAAT was awarded a contract by Azerbaijan’s government to build a seawater reverse osmosis desalination plant in Sumagait.

More about the project: The plant will have an estimated daily capacity of around 300k cubic meters and will help meet the growing water demand in Baku and the Absheron Peninsula. The Saudi-Turkish consortium will run the plant for 27.5 years before handing over its management to the Azerbaijan State Water Resources Agency.

HEALTHCARE-

Spimaco secures medical products supply contract: The Saudi Pharmaceutical and Medical Supplies Company (Spimaco) landed a five-year, SAR 820.3 mn contract — paid 164.1 mn annually — to supply medical products to Ibrahim Al Hudhaifi International Company. The agreement covers the supply of fever medicine Fevadol and an undisclosed allergy medicine, among other products.

ENERGY-

City Cement is switching to natural gas: City Cement Company tapped Aramco for natural gas supply to convert its liquid fuel-run production facilities to run on natural gas. This comes under the government’s Liquid Fuel Displacement Program, which aims to replace 1 mn barrels of liquid fuels per day across the agriculture, manufacturing, and utilities sectors by 2030.