Bulletin: TK Elevator's Joint Venture With And Capital Increase From Alat Will Be Credit Positive

This report does not constitute a rating action. MADRID (S&P Global Ratings) Feb. 28, 2025--S&P Global Ratings said today that it views as credit positive TK Elevator's announced plans to establish a joint-venture (JV) partnership with Alat, a conglomerate formed by Saudi Public Investment Fund. Alat will also provide new equity at TK Elevator's holding level. The JV, valued at €160 million, will manufacture and provide elevator and escalator solutions in Saudi Arabia, fueled by the country's plan to transform its economy through a massive investment and infrastructure program. It will also make use of TK Elevator's network in the Middle East and North Africa (MENA) region. We understand that both partners will hold comparable shares in the JV. TK

...February 28, 2025 This report does not constitute a rating action. MADRID (S&P Global Ratings) Feb. 28, 2025--S&P Global Ratings said today that it views as credit positive TK Elevator's announced plans to establish a joint-venture (JV) partnership with Alat, a conglomerate formed by Saudi Public Investment Fund. Alat will also provide new equity at TK Elevator's holding level. The JV, valued at 160 million, will manufacture and provide elevator and escalator solutions in Saudi Arabia, fueled by the country's plan to transform its economy through a massive investment and infrastructure program. It will also make use of TK Elevator's network in the Middle East and North Africa (MENA) region. We understand that both partners will hold comparable shares in the JV. TK Elevator will incorporate its existing Saudi business as an in- kind contribution and Alat will provide a cash injection. In our view, the proposed partnership will have favorable long-term effects for TK Elevator, as it will...

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