Saudi Catering Inks $2.4 Bn Concession Deals with Red Sea Global

The Red Sea Global project in Saudi Arabia. (Asharq Al-Awsat)
The Red Sea Global project in Saudi Arabia. (Asharq Al-Awsat)
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Saudi Catering Inks $2.4 Bn Concession Deals with Red Sea Global

The Red Sea Global project in Saudi Arabia. (Asharq Al-Awsat)
The Red Sea Global project in Saudi Arabia. (Asharq Al-Awsat)

Saudi Airlines Catering Company (SACC) signed two contracts with Red Sea Global (RSG) at a total value of $2.4 billion.

The Saudi Tadawul announced a one-day trading halt on Saudi Catering's stock, which came under the company's request before disclosing a material event. Trading on the shares will resume on Tuesday.

The first contract included designing, building, operating, and transferring a central laundry to serve hotels, resorts, and other facilities and sectors at the Red Sea project, valued at $720 million.

The second includes designing, building, operating, and transferring a central production unit for catering and facilities management services.

It will serve RSG's employees at hotel establishments and resorts and other facilities and sectors across the Red Sea destination at an estimated value of $ 1.6 billion.

Each contract is valid for 20 years, said Saudi Catering, adding that it expects a positive contribution to be shown in its accounts by Q3 2025.

The contracts are set to boost the company's business sustainability by increasing its cash flow and strengthening its business.

Furthermore, they come as part of Saudi Catering's strategic plan to attract investment opportunities in new industrial and tourist cities.

The statement said that the two contracts, subject to the RSG board's final sign-off, are part of the strategic plan implemented by Saudi Airlines Catering to attract investment opportunities in new industrial and tourist cities.



Tunisia Gets Offers in 75,000 T Soft Wheat Tender, Traders Say

Agricultural labourers harvest the wheat crop at Chadiala village in the northern Indian state of Punjab April 10, 2008. REUTERS/Ajay Verma (INDIA)
Agricultural labourers harvest the wheat crop at Chadiala village in the northern Indian state of Punjab April 10, 2008. REUTERS/Ajay Verma (INDIA)
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Tunisia Gets Offers in 75,000 T Soft Wheat Tender, Traders Say

Agricultural labourers harvest the wheat crop at Chadiala village in the northern Indian state of Punjab April 10, 2008. REUTERS/Ajay Verma (INDIA)
Agricultural labourers harvest the wheat crop at Chadiala village in the northern Indian state of Punjab April 10, 2008. REUTERS/Ajay Verma (INDIA)

The lowest price offered in the international tender from Tunisia's state grains agency on Thursday to purchase about 75,000 metric tons of soft wheat was believed to be $262.91 a ton cost and freight (c&f) included, European traders said.

Offers are still being considered and no purchase has yet been reported. The lowest offer is not always accepted if conditions attached to it are regarded as unattractive, Reuters reported.

The lowest offer was believed to have been submitted for optional-origin wheat by trading house Cargill for 25,000 tons, they said.

Cargill also made the next lowest offer of $263.91 also for 25,000 tons, they said.

Reports reflect assessments from traders and further estimates of prices and volumes are still possible later.

Shipment was requested between May 20 and June 30 depending on origin supplied.