Saudi-listed United International Transport Company, also known as Budget Saudi, has received shareholder approval for a capital increase to facilitate the acquisition of Al Jazira Equipment Company (AutoWorld) from SEDCO Holding. As part of the deal, Budget Saudi will issue 7 million new shares to SEDCO Holding, which will account for 8.96% of Budget Saudi’s share capital post-capital increase. The newly issued shares will begin trading on the Saudi Exchange following the completion of necessary procedures. The ownership of AutoWorld will transfer to Aljozoor Alrasekha, a wholly-owned subsidiary of Budget Saudi.
The acquisition aims to leverage Budget Saudi’s growth opportunities in the Kingdom’s strong economy, transformation in the transportation sector, and the burgeoning tourism industry. CEO Fawaz Danish stated that the move would also facilitate the merging of Budget Saudi’s Payless brand with AutoWorld, targeting more price-sensitive customers. Additionally, the acquisition is expected to bolster Budget Saudi’s standing in the B2B and B2G segments, driven by a notable market shift towards usage-based models. Following the transaction, Budget Saudi aims to diversify its customer base by expanding into sectors such as oil and gas, where AutoWorld has a significant presence.

Transportation, Automotive, Financial Services,Saudi Arabia

https://www.zawya.com/en/markets/equities/tadawul-listed-budget-saudi-to-acquire-leasing-company-autoworld-pzg26yjs