By Staff writer
Troubled construction company reportedly considering sale of half its stake in Tibah Airports Development
Saudi Oger, the troubled construction company, is reportedly in talks to sell half of its stake in the company that operates Saudi Arabia’s Madinah airport to Turkish partner TAV.
Bloomberg reported on Wednesday that the two companies have started talks on the transfer of a 16.7 percent stake in Tibah Airports Development, citing a TAV statement.
The deal would allow TAV, which also operates Turkey’s biggest airport in Istanbul, to raise its holding to 50 percent from 33.3 percent.
Saudi Oger, owned by Lebanon’s Hariri family, holds 33.3 percent of Tibah with Al Rajhi Holding Group, Bloomberg said.
It added that the three companies have been operating Madinah airport, which served 5.8 million passengers last year, since 2012.
Oger has been hit hard by a slowdown in the Saudi construction sector due to low oil prices and state spending cuts. This is the reason why wage payments to thousands of its workers have been delayed for months, according to Saudi media and the workers themselves.