Saudi Trade and Export Development Co., (LogiPoint), has fully acquired Elite Group through its Dubai-based affiliate, Green Dome Investments LLC., LogiPoint’s parent company said in a market filing on Sunday.
LogiPoint, is a subsidiary of Saudi Industrial Services Co., (SISCO), which, in turn, owns a 76% stake in LogiPoint and 31.7% stake in Green Dome. LogiPoint invests around SAR58 mln ($15.466 mln) in Green Dome, while the recently acquired Elite Group, is an integrated land freight and courier solutions providers in the Middle East.
The acquisition comes at a critical juncture in time where e-commerce has boomed on the backdrop of the Covid-19 pandemic’s threatening the globe for over a year. It also falls in line with SISCO’s 5-year plan to expand well into the logistics services, and catering an end-to-end solution for the GCC’s e-commerce business.
As per SISCO’s filing, the acquisition will be funded via a mix of equity and debt through Green Dome, and will in turn give SISCO and LogiPoint access to a critical overland freight and courier services business spanning across four GCC countries: Oman, Bahrain, Qatar and the UAE.
The Saudi company says it believes that the impact from this takeover on its businesses as well as on LogiPoint’s results should be reflected in the Q4 2021 consolidated financial statements via LogiPoint.