LOGISTICS-

Falcon City’s logistics zone on the way: SAL Saudi Logistics Services finalized an agreement with Sela Company to lease land in Riyadh’s Falcon City for 30 years to develop and operate a logistics zone, with an estimated investment of SAR 4.2 bn, it said in a disclosure to Tadawul yesterday.

The details: The project covers 1.6 mn sqm and includes a three-year grace period. SAL will pay a one-time non-refundable fee of SAR 25 mn for infrastructure, along with an annual lease rate of SAR 16 per sqm, increasing by 1.5% each year after the grace period.

We knew this was coming: The logistics player inked a preliminary agreement in March to lease a 1.5 mn sqm land plot from Sela for the project, with an estimated investment of SAR 4 bn.

ALSO FROM SAL- The company’s board approved plans to launch a SAR-denominated sukuk program, according to a disclosure to Tadawul yesterday. JP Morgan Saudi Arabia and SNB Capital have been appointed as arrangers for the program, which will proceed following regulatory approvals, with further details to be announced once finalized.

M&A WATCH-

Ades International Holding and its Cayman-based BidCo are moving forward with acquiring Shelf Drilling, after the target firm’s shareholders greenlit the merger, it said in a Tadawul disclosure yesterday. The approval comes following Ades increasing its bid to acquire all outstanding shares of Dubai-based and Oslo-listed Shelf Drilling last month at NOK 18.50 per share, up from a previous NOK 14. The new price is a premium of 33.6% to its previous closing price on 15 September. Ades already owns 17.9% of Shelf.

ADVISORS- SpareBank 1 Markets is quarterbacking the transaction as Ades’s sole financial advisor, with Schjødt and Maples Group providing counsel. Meanwhile, Evercore is advising Shelf Drilling, with Advokatfirmaet Thommessen AS, Conyers, and Latham & Watkins providing counsel.

AVIATION-

Riyadh Air signed an MoU with Uber to work together on improving travel experiences in the Kingdom and abroad, according to a press release. The two companies plan to offer integrated booking options and special benefits for members of Riyadh Air’s upcoming loyalty program.

IN CONTEXT- Saudi’s newest airline is on track to kick off operations this year after delaying its planned launch earlier in the year, a representative of Riyadh Air told EnterpriseAM last month. Service is expected to begin once Boeing hands over the first two of four Boeing 787 Dreamliners currently undergoing assembly.

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