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Konstelec Engineers Limited, a leading name in engineering consultancy and EPC services, has officially announced a significant restructuring in the constitution of its joint venture company, Degat Alebtikar Co. Ltd (also known as Precision Innovation Co. Ltd), based in Saudi Arabia. This development marks a strategic move to sharpen the JV’s operational focus and strengthen its foothold in the Saudi EPC market.
Key Highlights of the Joint Venture Restructuring
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Saudi Partner Replacement: The existing Saudi partner, Al-Ebtekar Technical Trading Company, has formally withdrawn from the partnership. In its place, Mr. Nasser Mohammed Al-Hajri, an individual investor, has been inducted as the new Saudi partner. This change was ratified by the Ministry of Investment, Kingdom of Saudi Arabia, through an official Investment Registration Certificate confirming the updated partnership structure.
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Unchanged Capital Structure: The restructuring does not impact the capital contribution of the joint venture. The total capital remains SAR 100,000, with Konstelec Engineers Limited holding 50% (SAR 50,000) and Mr. Nasser Mohammed Al-Hajri also owning 50%. This capital subscription was completed via cash consideration.
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Business Continuity and Operations: Konstelec emphasizes that this alteration in partnership will not affect the joint venture’s business continuity or operational status. The entity will continue to focus on EPC contract execution and related services without interruption.
Detailed Overview of Degat Alebtikar Co. Ltd
Degat Alebtikar Co. Ltd, recognized commercially under registration number 2055161804, is a Limited Liability Company incorporated in Saudi Arabia on February 17, 2025. As a newly formed entity, turnover data is not applicable as yet. The company specializes in electrical and mechanical installations along with other associated EPC activities, aligning closely with Konstelec Engineers Limited’s core competencies.
Strategic Rationale Behind the Change
The induction of Mr. Nasser Mohammed Al-Hajri is aimed at enhancing the joint venture’s operational effectiveness and project execution capabilities in the Saudi market, an area with vast potential given ongoing infrastructure growth in the region. The withdrawal of the previous partner and introduction of a new partner reflect careful governance and strategic alignment without altering shareholding proportions or capital invested.
Regulatory Compliance and Approvals
This partnership amendment has been duly acknowledged by the relevant Saudi authorities. The Ministry of Investment, Kingdom of Saudi Arabia, has issued the necessary Investment Registration Certificate, thus legally confirming the revised partnership arrangement and enabling the joint venture to operate confidently within the regulatory framework.
Financial and Shareholding Details
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Total Capital of the JV: SAR 100,000
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Konstelec Engineers Limited Shareholding: 50% (SAR 50,000 via cash subscription)
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New Saudi Partner, Mr. Nasser Mohammed Al-Hajri: 50%
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No involvement of promoters or promoter group of Konstelec in the JV ownership
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Not categorized as a related party transaction
Future Outlook and Business Operations
Konstelec Engineers Limited will continue to execute Engineering, Procurement, and Construction (EPC) contracts through the joint venture, leveraging its expertise to tap into Saudi Arabia’s expanding infrastructure and industrial sector opportunities. The restructuring is positioned to bolster the JV’s capacity for efficient project delivery in the Kingdom, reinforcing long-term business sustainability.
In summary, the restructuring of Degat Alebtikar Co. Ltd’s partnership underscores Konstelec Engineers Limited’s commitment to strategic growth and operational excellence in key international markets, particularly Saudi Arabia. This update represents a positive step forward for the joint venture’s future prospects and aligns seamlessly with Konstelec’s global expansion objectives.
Source: Reuters, Official announcement on Konstelec Engineers Limited website and disclosures
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