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Al Moammar Information Systems Co. Announces Contract Sign Off with Saudi Fransi Capital (SFC)
| Element List | Explanation |
|---|---|
| Introduction | Al-Moammar Information Systems Company (MIS) announces the signing of agreements for the development, design, and management of facilities for data centers with Saudi Fransi Capital (SFC) in its capacity as the manager of the (proposed private) investment fund that is compliant with the provisions of Islamic Sharia, which will invest and own six data centers in the Kingdom of Saudi Arabia Saudi Arabia with an estimated budget of 1.2 billion Saudi riyals as a first phase. |
| Date of Announcement of the Award | 2021-06-07 Corresponding to 1442-10-26 |
| Contract Subject Matter | With reference to the announcement of Al-Muammar Information Systems Company (MIS) on (Tadawul) website on June 7th,2021 AD, corresponding to 26-10-1442 AH, in which the company announced the signing of a binding memorandum of understanding between (MIS) and Saudi Fransi Capital (SFC) to establish a special investment fund ("the Fund"). “Proposed”) with the aim of developing, owning, and operating data centers throughout the Kingdom of Saudi Arabia, Al Moammar Information Systems (MIS) announces the signing of development, design, and facility management agreements with Saudi Fransi Capital (SFC), in its capacity as the manager of the proposed (private) investment fund ) which is compatible with the provisions of Islamic Sharia, which will invest and own six data centers in the Kingdom of Saudi Arabia with a value of approximately 1.2 billion Saudi riyals as a first phase. |
| Date of Signing the Contract | 2021-07-04 Corresponding to 1442-11-24 |
| Contract Value | 1.2 billion Saudi riyals |
| Contract Details | Where (MIS) and SFC, on behalf of the proposed fund, signed agreements to establish, execute and operate six (6) data centers across the Kingdom with an estimated execution budget of about 1.2 billion Saudi riyals. as the developer and designer to undertake the design, development, and execution (on a turnkey basis) of six data centers with an initial capacity of 4 MW each. Furthermore, MIS will continue as the facility manager for the six data centers for an initial period of 15 years. MIS, in its role as developer and designer, will receive the basic design development fee of 10% of the development budget. Payments for the development and design fees will be made up of (a) units in the proposed fund (not to exceed 10% of the total outstanding units of the proposed fund) and (b) cash. MIS will also receive a facility management fee of 7% of the revenue generated from data center operations, initially, the facility management agreements will be binding for 15 years. execution is expected to commence around the fourth quarter of FY21 based on tentatively agreed timelines, and to be completed in the fourth quarter of 2022. The validity of these agreements is contingent upon the successful launch of the proposed fund expected in the 3rd quarter of 2021. |
| Contract Duration | 16 Month |
| Financial Impact and the Relevant Period | The expected financial impact of the development and design agreements for (MIS) will be about 120 million Saudi riyals based on the development and execution stages. The financial impact is expected to be achieved over the currently targeted development period, which begins in the fourth quarter of 2021 till 4th quarter of 2022. There will also be an additional positive impact on the revenues and profits resulting from the execution of the project during the execution phase. The estimated financial impact of the facilities management agreements for (MIS) will start when the data centers are started and operating, which is expected to be achieved in the first quarter of 2023. Overall, the project will have a positive impact, however, it is not possible at this stage to give specific details about the timing and size of the effect of the agreements. MIS also expects a positive financial impact from its investment in the proposed fund, which will be realized as part of the design construction fees to be paid in modular. As of now, it is too early to give detailed information about the timing and magnitude of the effects of the agreements. |
| Related Parties | Not applicable |
| Additional Information | Al Moammar Information Systems Company (MIS) would like to draw the attention of all to the fact that the signing of agreements for the development, design, and management of facilities for data centers with Saudi Fransi Capital (SFC), Al Moammar Information Systems Company (MIS) would like to draw everyone’s attention to the fact that the signing of the agreements for development, design and facilities management for data centers with Saudi Fransi Capital (SFC) mentioned above is contingent upon the completion of the successful launch of the procedures of the special investment fund ("the Fund"). “Proposed”) May Allah grants success. |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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