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.
