Al-Nawasi Gulf Trading Company sold new cars; value of 200 million Saudi Riyals to Saudi Cable Company on credit according to the models and quantities listed in the contract and in accordance with the quotation attached with it, and be added an increase of 5% per year and shall be delivered within 25 working days from the date of signing the contract against an advance payment of12% of the total value, of it 3% payable upon signature, and half of 9% payable upon receiving half of the cars’ value and the rest is after receiving the remaining amount of the cars and the duration of this contract is 60 months.
200 Million Saudi Riyal
1. A contract to purchase cars on credit at an amount of 200 million Saudi Riyal. 2. Payable on annual installments for a period of 5 years, at an increase of 5%.
Parties of the Transaction
1. Nawasi Gulf Trading Company (Seller). 2. Saudi Cable Company (Buyer).
Transaction Funding Method
Transaction Execution Date
2021-05-04 Corresponding to 1442-09-22
Description of the Business of the Asset forming the Subject Matter of the Transaction
Cars – Assets Retained for the purpose of resale.
Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction
To finance the working capital
Expected Impact of the Transaction on the Company and Its Operations
The company will use the cash flows obtained from the resale of the assets in order to finance the working capital, which will result into an increase of the operations activity of the Company by increasing working capital turnover.
Saudi Cable Company will resell these assets within a short period for the purpose of using the cash flows obtained from the resale in order to finance the working capital.