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, Saudi Advanced Industries said that the book value of its share in Al-Salam Aerospace was 19.52 million Saudi riyals ($5.2m). Al-Salam Aerospace is a limited liability company established under the patronage of the Saudi Arabian Ministry of Defense Economic Offset Programme.
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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.
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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