United International Transportation Company (Budget Saudi) [4260.SE] has signed a 10-year exclusive rights agreement to Avis’ Payless Car Rental brand in Saudi, effective as of 30 June 2016. Payless Car Rental, which was founded in 1971, operates 120 rental locations in the US, Canada, Europe and South America and serves price-conscious leisure and business travelers. Budget’s management expects the contract to affect the company’s revenues positively in 2016, given the different cars and rental prices that the Payless brand provides for customers within Saudi Arabia, and especially since low-cost car rental is relatively novel offering in the Saudi market. The new franchise agreement has no bearing on the company’s current agreement for the Budget car rental brand. (Company disclosure)   Budget Saudi: SAR44.92 as of 05 May 2016, Rating: Buy, FV: SAR67.00 per share, MCap: USD609 million, BUDGET AB / 4260.SE