Saudi Bin Laden Group (SBG), the Saudi Arabian construction giant, has asserted that it remains a private sector company owned by its shareholders amid reports that some of those shareholders may be transferring their shares to the government as part of a financial settlement with authorities.

In a statement, the company clarified the situation following media speculation that the Saudi government has taken over SBG, which has worked on a number of mega-projects in the Kingdom over several decades.

SBG also confirmed that contracted work with the government – which remains a large part of its activities – are ongoing. This includes the projects currently underway at the two holy mosques and the Zamzam rehabilitation project, which began two months ago and is expected to end before the start of Ramadan this year.

According to the statement, SBG management said that based on information available to it, some of the shareholders may have agreed to a settlement that involves the transfer of some SBG shares to the government of Saudi Arabia against outstanding dues.

This was a positive step, management added, and pointed out that it was currently restructuring its governance and executive management team to meet its commitments to all stakeholders. In the statement, it said that restructuring efforts began two years ago, with the objective of separating ownership from management in accordance with best governance standards.

In order to support these efforts, a five-member supervisory committee has been formed, comprising of three independent members – Dr Abdulrehman Hamad Al Harkan, Dr Khaled Hamza Nahas and Khaled Mohammed Al Khowaiter – along with two members from the shareholders group – Yahia Mohammed Binladin and Abdullah Mohammed Binladin, SBG said.

This committee will be tasked with restructuring the group and empowering the new executive management to lead the projects and overcome the challenges currently facing the company, leading it back to profit again, the statement concluded.