K&A guides a complicated private share swap transaction

In a significant development in the car leasing industry, Khoshaim & Associates (K&A) has successfully advised the Saudi Economic and Development Holding Company (SEDCO) on a complex private share swap transaction. The agreement, signed with the United International Transport Company (Budget), involves SEDCO selling all its shares in Al Jazira Equipment Company Limited (AutoWorld) to Budget. In return, SEDCO will receive newly issued shares in the Budget.

The deal, valued at approximately half a billion Saudi Riyals, marks a milestone in the sector. It brings together two of the industry’s most prominent companies – Budget, a Saudi-listed company with over 100 locations across KSA, and AutoWorld, a leading privately held operational leasing company based in Al-Khobar.

The transaction remains subject to regulatory and shareholders’ approvals. The K&A team, led by Managing Partner Zeyad Khoshaim and Senior Associate Ghaida Meaigel, with support from Counsel Khalid Alyafi and Associate Saudi Aldriss, played a pivotal role in facilitating this landmark deal.