Zawya - News: In points: Details about the acquisition of "Shas Water Services" by Saudi Arabia's "Miyahuna" for water and sanitation services
Fatima Al-Kashef
Saudi Arabia’s Miyahuna, a company that develops water and wastewater infrastructure and is listed on the Saudi Stock Exchange, has signed a sale and purchase agreement to acquire the entire Shas Water Services Company, based in Riyadh, according to Miyahuna’s disclosure to the stock exchange on Sunday.
Quick background on the two companies
(According to their websites + disclosures + market data)
Shas Water Services Company was established in 1989 and operates in the production and distribution of water in Riyadh. It owns three drinking water production plants in Saudi Arabia with a total production capacity of 30,000 cubic meters per day. Ownership is divided between Nestlé and its subsidiary, Al Manhal Water Factory, which is based in Saudi Arabia.
As for Miyahuna, it is a Saudi joint-stock company listed on Tadawul since June 2024. It was established in 2008 and is headquartered in Riyadh. Its business includes water transmission and distribution, collection, treatment and reuse of wastewater, in addition to operating water and wastewater networks and facilities and implementing infrastructure projects related to the sector.
More details about the deal
(According to the disclosure)
The deal includes the acquisition of all ownership stakes in Shas, including the stakes owned in its subsidiaries.
The value of the deal is 95 million riyals (about $25.3 million), which can be increased to a maximum of 102.7 million riyals (about $27.4 million), if Shas Company achieves specific financial targets according to the results of the audited annual financial statements for 2025, which are not yet available.
- The acquisition will be financed through "Miyahuna's" own resources and financing facilities.
- The deal supports “Miyahuna’s” strategy to expand its water distribution business in Riyadh, future growth opportunities and business development.
- The transaction is subject to the approval of the General Authority for Competition and other relevant regulatory approvals.
(Prepared by: Fatima Al-Kashef, Edited by: Shaimaa Hefzy, Contact: zawya.arabic@lseg.com )
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