Sustained Infrastructure Holding Co. — Capital/Financing Update 2021

Oct 3, 2021

Saudi Industrial Services Company (“SISCO”) provides additional disclosure on the impact of the sale of a minority equity stake in Red Sea Gateway Terminal Limited (“RSGT”).

2190 · 03/10/2021 15:32:33 · Announcement #65035 · View on Saudi Exchange

Saudi Industrial Services Company (“SISCO”) provides additional disclosure on the impact of the sale of a minority equity stake in Red Sea Gateway Terminal Limited (“RSGT”).

Element List

Explanation

Announcement Detail

Referring to the Company's announcements on the Saudi Exchange website dated 27/01/2021G corresponding to 14/06/1442 and 15/07/2021G corresponding to 05/12/1442, Saudi Industrial Services Company (“SISCO”) announces 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”) (the “Transaction”) 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 SAR 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.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.