Saudi PIF, China's COSCO Buy Stake in Red Sea Gateway Terminal

The Public Investment Fund, Saudi Arabia's sovereign wealth fund, and COSCO SHIPPING Ports Ltd have completed a deal to buy a combined 21.2% stake in Red Sea Gateway Terminal Ltd from Saudi Industrial Services Co (SISCO).

SISCO will receive gross proceeds of 556.5 million riyals ($148 million) for the deal, it said in a statement.

The proceeds will support the company’s strategic objectives of enhancing shareholder returns and optimizing its portfolio, it said.

LogiPoint also divested its 4% direct equity stake in the terminal and will receive gross proceeds of 105 million riyals, it said.

JPMorgan acted as financial adviser on the transaction and Abdulaziz Alajlan & Partners in association with Baker McKenzie Limited acted as legal counsel.

($1 = 3.7504 riyals) 

(Reporting by Saeed Azhar; editing by Jason Neely)