SASCO Gets SAR 25.9M for Riyadh Station Land Takeover

Saudi Automotive Services Company (SASCO) said it received a notice of expropriation covering part of its station land in Riyadh's Arqa District. The compensation for the partial land takeover is SAR 25.9 million.

The company disclosed the development in a filing to the Saudi stock exchange. SASCO said the compensation amount reflects the valuation of the affected portion of the property. The expropriation covers a section of the station's land, not the entire site.

SASCO did not specify the exact size of the expropriated area or the timeline for the transfer. The company said it would book the compensation in its financial statements once the process is finalized. The filing did not indicate any operational disruption at the remaining station facilities.

The Arqa District station is one of SASCO's service locations in the capital. The company operates a network of fuel stations and automotive service centers across Saudi Arabia. The expropriation notice came from the relevant government authority, which has the power to acquire private land for public projects under Saudi law.

SASCO shares traded near SAR 52.50 on the Tadawul before the announcement. The stock has moved in a range of SAR 45 to SAR 60 over the past 12 months. The compensation represents roughly 0.5% of SASCO's market capitalization of about SAR 5.2 billion.

The company did not provide guidance on whether it would use the proceeds for reinvestment or return them to shareholders. SASCO's most recent quarterly report showed net income of SAR 87 million on revenue of SAR 1.2 billion.