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INVESTMENT WATCH-
#1- The government is considering opening an Investment Ministry office in Brazil to help boost trade between the two countries, Arab News reported yesterday. The plans were announced during the Saudi-Brazilian Business Forum earlier this week. No further details were provided on the plans. Bilateral trade between Saudi and Brazil reached USD 6.7 bn last year, Brazilian group LIDE President Joao Doria Neto told Arab News. LIDE organized the forum in partnership with the Federation of Saudi Chambers.
ALSO- Brazilian planemaker Embraer is in talks with the Kingdom for the sale of up to 50 military transport aircraft C-390 to the Saudi Royal Air Force, Arab News reported, citing statements by the aircraft maker VP Caetano Spuldaro. He did not provide further details on the negotiations.
#2- Plastic Zahrat Al Waha is set to start the commercial operations of its first printing and packaging production line by the end of 1H 2024 in a bid to diversify its product portfolio and boost its plastic market share, Chairman Ahmed Al-Theyab told Argaam. There’s no publicly available information about the size of investment. The company’s also planning to export to Central and South African markets, with its exports amounting to 4% of total sales in 4Q 2023.
#3- Alhokair Group has signed an MoU with New Rest that will see both companies establish a catering and site management joint venture, targeting clients in the aviation and procurement industries, Alhokair said in a disclosure to Tadawul. Shares of the SAR 100k JV are evenly divided between Alhokair Group and New Rest.
REAL ESTATE-
Real estate developer Enma AlRawabi has inked a SAR 1 bn lease agreement with Riyadh Schools Holding for a school campus in Riyadh for a period of 25 years, it said in a filing to Tadawul.The first year will cost Enma some SAR 29.33 mn in rent, and will be followed by incremental payments over the course of the leasing period.
MANUFACTURING-
Petrochemical manufacturer Sipchem saw its shipping costs surge 15%-18% as Red Sea disruptions forced longer route diversions, CEO Abullah Al Saadoun told Al Arabiya Business (watch: runtime: 1:36). 35% of the company’s exports are traditionally transported via the Red Sea route and were thus impacted by the recent disruptions, Al Saadoun added.
The silver lining: Sipchem’s European sales saw some benefits from Red Sea disruptions due to its large stocks in Italy, Spain, the Netherlands, Belgium, and Germany, boosting its competitiveness as a supplier in those markets when compared to those further afield in Asia, he explained.
M&A WATCH-
Almunajem Foods signed a binding share purchase agreement to acquire a 17% stake in Balady Poultry from existing shareholders, it said in a disclosure to Tadawul yesterday. The self-financed transaction is valued at SAR 134 mn.
CAPITAL MARKETS-
Etihad Atheeb sold 877k unsubscribed shares in the rump offering of its rights issue shares, reeling in SAR 76 mn in proceeds, it said in a regulatory filing to Tadawul. The issued shares will be deposited into shareholders’ accounts tomorrow.
