Al Baha inks deal to buy High End Centers for SAR 145 mln

Al Baha Investment and Development Co. inked an agreement on Thursday to acquire High End Centers LLC for SAR 145 million, which will be paid by issuing 14.5 million ordinary shares to the shareholders of the target company.

The acquisition will be implemented with a swap ratio of 2.9: 1 in High End Centers, which has SAR 50 million in capital, the company said in a statement to Tadawul.

Accordingly, Al Baha will increase its stake in the supermarket operator to 100 percent, while High End Centers’ shareholders will hold a 49.15 percent stake in Al Baha.

The agreement, which will remain effective until March 31, 2017, could be extended upon mutual consent and may be terminated upon breach by either party.

The capital increase is subject to the approval of regulatory authorities and the company’s shareholders, Al Baha added.

In September 2015, Al Baha signed a preliminary agreement to fully acquire the operator of supermarkets, commercial and residential complexes in a share swap, according to data available on Argaam.