Saudi Bin Laden investors may sell key stakes to government
(1/14/2018 5:38:00 AM)
Leading construction giant Saudi Bin Laden Group (SBG) has asserted that it remains a private sector company owned by its shareholders amid reports that some of them may transfer their shares to the government as part of a financial settlement with authorities.
The clarification comes after some media outlets suggested that the Saudi government has taken over SBG, which has worked on dozens of mega-projects throughout past decades.
SBG can also confirm that contracted work with the government, which remains a large part of its activities, are ongoing. This includes the projects currently operating in the two holy mosques and the Zamzam rehabilitation project, which began months ago and is expected to end before Ramadan 2018, the company said on Saturday.
Based on information available to the management, some of the shareholders may have agreed a settlement that involves transferring some SBG shares to the goverment of Saudi Arabia against outstanding dues, it stated.
SBG sees this as a positive step and is currently restructuring its governance and executive management team to meet its commitment toward all stakeholders, said the company in a statement.
Restructuring efforts started two years ago with the objective of separating ownership from management in accordance with best governance standards, it stated.
To support these efforts, a five-member supervisory committee has been constituted. It comprises three independent members - Dr Abdulrehman Hamad Al Harkan, Dr Khaled Hamza Nahas and Khaled Mohammed Al Khowaiter - and two members from the shareholders group, Yahia Mohammed Binladin and Abdullah Mohammed Binladin, said the company in the statement.
The committee will restructure the group and empower the new executive management to lead the projects and overcome the current challenges, leading the company to be profitable again, it added.