Saudi Arabia-based United International Transport Company (Budget Saudi) is to issue new shares to fund its acquisition of Al Jazira Equipment Company (AutoWorld), the vehicle leasing subsidiary of Sedco Holding.

Budget Saudi will issue seven million ordinary shares, representing 8.96% of Budget Saudi’s share capital, to SEDCO Holding. AutoWorld’s shares will then be transferred from SEDCO Holding to Aljazoor Alrasekha, a subsidiary of Budget Saudi. 

Budget Saudi plans to merge AutoWorld with Payless, a short-term car rental brand that targets more price-conscious consumers.

The company foresees its market share increasing in the b-to-b — especially in the hydrocarbons sector — and b-to-g (business to government) segments, where it predicts a shift from asset ownership to a use-based model. 

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