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Sunday, 16 February 2025
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M&A WATCH-
Building materials manufacturer Bawan finalized its acquisition of an 80% stake in Petronash Holding, according to a disclosure to Tadawul. The step comes following October’s conclusion of a sale and purchase agreement with Petronash Global to acquire its full stake in Petronash Holding for USD 175 mn.
REFRESHER- The terms of the sale see Bawan paying USD 80 mn upfront for the 80% stake, with an additional USD 60 mn follow-on payment if Petronash meets three-year financial targets. The remaining 20% stake will be purchased after the company publishes its 2027 and 2028 financials for an amount that will be determined through an agreed valuation method.
ADVISORS- Bawan tapped PwC as its financial advisor for the transaction, with Khoshaim and Associates providing counsel and Rystad Energy acting as commercial advisor. Meanwhile, Freshfields Bruckhaus Deringer and Piper Sandler are advising Petronash on the transaction.
DEBT WATCH-
Zain KSA lined up a SAR 1.93 bn shariah-compliant loan with AlRajhi Bank to refinance its outstanding murabaha facility with the Finance Ministry, according to a disclosure to Tadawul. The new five-year facility, set to mature in February 2030, is backed by a promissory note and will be repaid in a single payment upon maturity.
MANUFACTURING-
#1- Four manufacturing projects with a total investment of SAR 2.1 bn were inaugurated in Sudair Industrial City, state news agency SPA reports. The projects include Sudair Pharma 's insulin plant, a factory for Marami Food Industries, a factory for Shawarma House, and Kirby Contracting's metal structures plant. Over SAR 1 bn will be financed from the Industrial Development Fund.
ALSO- The Kuwaiti Danish Dairy Company (KDD) signed a contract with the Saudi Authority for Industrial Cities and Technology Zones (Modon) to establish a factory in Sudair Industrial City, SPA said. No further details were disclosed.
#2- Hyperview Mobility will establish the Kingdom’s first hydrogen-powered truck factory and the Middle East’s first autonomous driving hardware factory under an MoU it signed with the Public Investment Fund, Hyperview Mobility’s Managing Partner Ali Al Sailik told Al Arabiya.
The details: The Jeddah-based project will kick off with a USD 50 mn investment for its initial phase and looks to produce 1k hydrogen trucks and 300k self-driving hardware units annually, with 60% of truck output earmarked for export. Key investors in the project include Saudi Aramco and Hyundai’s investment fund, with discussions with other financing sources underway. Meanwhile, purchase agreements are already in place with Switzerland and Germany with ready demand for the factory’s output, Al Sailik added.