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Saudi Industrial Services Company (“SISCO”) announced on Sunday an update on the financial impact of the sale of a 21.2% direct equity stake, together with the sale of a 4% equity stake by subsidiary Saudi Trade and Export Development Company Limited (LogiPoint) (in which it owns 76%) in its subsidiary Red Sea Gateway Terminal Limited (“RSGT”) following the finalization of associated transaction costs.
SISCO received a total gross consideration of SAR 556.5 million (before all transaction costs) for the divestment of its 21.2% equity stake in RSGT.
LogiPoint received a total gross consideration of SAR 105 million (before all transaction costs) for the divestment of its 4% equity stake in RSGT.
The Transaction was treated as a non-adjusting event during Q2 2021 and a disclosure of the transaction and its accounting treatment was included in the notes to the Q2 2021 financial statements.
Following the finalization of the transaction costs, the impact of the transaction on the Q3 2021 financial statements (subject to audit by the external auditors) is as follows:
The transaction will only be recognized through the consolidated statement of financial position (balance sheet) and therefore no impact from the transaction will be recognized in the Group’s Q3 2021 consolidated income statement
Combined unaudited net accounting impact of SR 361.9 million (subject to audit by the external auditors) for both SISCO and LogiPoint transactions, will be reflected in the equity in the Group’s Q3 2021 consolidated financial statements.
SISCO’s effective share of RSGT Net Income will reduce from 60.6% to 36.36% in Q3 2021
From an accounting perspective, SISCO will continue to consolidate RSGT.