| Element List | Explanation |
|---|---|
| Introduction | BATIC Investment and Logistics Co. is pleased to announce the acquisition by its wholly-owned subsidiary, Saudi Transport and Investment Co. (MUBARRAD), of (90) MAN 20-ton truck heads (2026 Model). The transaction value represents approximately 10% of the Company’s net assets. The execution of the contract was finalized by both parties on Thursday, April 2, 2026. |
| Transaction Details | A procurement contract for ninety (90) MAN truck heads, with a 20-ton capacity, Model Year 2026. |
| Transaction Amount | Approximately 10% of the company's net assets. |
| Transaction Conditions | The contract includes a set of terms and conditions governing the relationship between the two parties, including but not limited to: supply and delivery terms, payment mechanism, warranty, force majeure, and dispute resolution mechanism, in accordance with the detailed clauses stipulated in the contract (noted that they were not listed under a single heading "Contract Terms" but were distributed across various clauses). In brief, the key terms include: Supply of (90) trucks within the Kingdom, with delivery in Riyadh. Two-year warranty (the first year with unlimited mileage, and the second year for the powertrain). The contract is subject to the laws and regulations of the Kingdom of Saudi Arabia. |
| Parties of the Transaction | Haji Husein Alireza & Co. Ltd. (First Party). Saudi Transport and Investment Co. (MUBARRAD) – A One-Person Company (A wholly-owned subsidiary of BATIC) (Second Party). |
| Transaction Financing Method | The value of this contract will be funded through the company's available banking facilities, in addition to cash flows from operating activities. |
| Date of Entering Into The Transaction | 2026-04-02 Corresponding to 1447-10-14 |
| Description of Activity of The Asset Subject of The Transaction | N/A |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | N/A |
| Transaction reasons | This contract is a pivotal component of MUBARRAD’s strategic mandate to modernize its operational fleet and optimize asset efficiency. Such initiatives are designed to drive down operational expenditures (OPEX), augment profit margins, and sharpen the Company’s competitive edge. Furthermore, this acquisition is strategically synchronized with the rapid expansion of the Kingdom’s logistics sector and the evolving dynamics of regional supply chains. It reinforces the Company’s capacity to capitalize on burgeoning growth opportunities, directly contributing to the objectives of Saudi Vision 2030 in establishing the Kingdom as a preeminent global logistics hub. |
| Expected Impact of the Transaction on the Company and Its Operations | This contract is expected to support Mubarrad's plans to restructure and modernize its operational fleet by introducing advanced units. This move aims to bolster operational efficiency and fleet readiness, while improving the quality of services provided to clients. Furthermore, it will increase the company’s capacity to meet the growing demand within the land transport sector for pharmaceuticals, food, goods, and various products both locally and regionally. It is also anticipated that this will have a positive impact on the operational cost structure in the medium and long term, thereby supporting enhanced profitability and sustainable financial performance. |
| Related Parties | None |
