RIYADH: Budget Saudi’s newly proposed acquisition of logistics and shipping firm Overseas Development is a “step in the right direction and at the right time.” CEO Fawaz Danish told Argaam.
Earlier this week, Aljozoor Alrasekha Trucking Co., a wholly owned unit of Budget Saudi, signed a memorandum of understanding for the acquisition of a 70 percent stake in Overseas Development’s subsidiaries in Saudi Arabia, the UAE, and Kuwait.
Danish said the potential takeover is likely to have a positive impact on the company’s financials, given the increased demand for logistics services.
He added that most of the funds invested will be used to expand and increase the scope of the company’s business.
“We hope to find solutions to reduce the problems of supply chains in Saudi Arabia and the Gulf countries,” the executive concluded.
Shares of Tadawul-listed Budget Saudi, formally known as United International Transportation Co., were down 0.53 percent by 11:50 a.m. Riyadh time in Tuesday’s session. The stock is currently trading at SR46.75 ($12.44).