Riyadh – Mubasher: Red Sea International Company recently completed the acquisition of 51% shareholding in Fundamental Installation for Electric Work Company (First Fix) for a total of SAR 544.17 million.
The acquisition, which was first announced on 12 June 2023, was funded over two tranches; an initial consideration worth SAR 250 million paid in cash at the closing of the deal on 1 October 2023 from Red Sea International's own resources, in addition to a SAR 294.17 million deferred consideration to be paid subject to certain conditions precedent, according to a bourse filing.
Red Sea International said it has the option to capitalise the debt representing the second tranche by issuing additional shares in First Fix, subject to regulatory and corporate approvals.
The acquisition will enhance Red Sea International's capabilities in the modular construction sector, as First Fix has a strong track record in residential, industrial, and commercial projects across the GCC region.
The financial impact of the transaction will reflect on Red Sea International’s income statement during the fourth quarter (Q4) of 2023.
Meanwhile, First Fix achieved its highest-ever revenues in 2022.
The listed firm noted that the acquired company will continue to be independently run by its current executive and management team.
In December 2022, Red Sea International signed a SAR 192.01 million deal to construct a turnkey housing complex in Al Ula.
