Saudi Advanced Industries has announced the signing of an agreement to sell its entire 10% stake of Al-Salam Aerospace Industries to Saudi Arabian Military Industries (SAMI), which is affiliated with the Public Investment Fund.
In a statement on the Tadawul stock exchange on 13 December 2023, Saudi Advanced Industries said that the book value of its share in Al-Salam Aerospace was SR19.52m ($5.2m). Al-Salam Aerospace is a limited liability company established under the patronage of the Saudi Arabian Ministry of Defense Economic Offset Programme.
The reason for the sale was stated as being “due to the losses” exceeding the capital of Al-Salam Aerospace Industries.
SAMI is a growing Saudi Arabian defence prime, operating across all defence domains, and is a key element of the country’s drive to reduce its reliance on foreign military imports.
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The deal appears in line with a Q3 trend that saw an increase in mergers and acquisitions (M&A) in the defence and aerospace sector. In the North American sector alone, there were 30 M&A deals announced in Q3 2023, worth a total value of $5.9bn, according to GlobalData’s Deals Database.
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