Arabian Centres (ACC) said in a bourse filing that its 95%-owned unit, Riyadh Centers Co. Ltd., sold its entire 25% stake in Aswaq Al Mustaqbal Trading Ltd. for SAR 97.5 million.
Aswaq Al Mustaqbal, the parent company of Panorama Mall in Riyadh, offloaded its 2,500 shares to Burooj International Co. Ltd., which owns the remaining share capital.
The terms of the deal stipulated that the seller will pledge the sale of the above-mentioned stakes, including rights and liabilities, and that the sale deal’s value represents a net terminal settlement between both parties.
Also, the deal value will include H1 2020 earnings and the seller is not entitled to claim any other profit for 2020. Additionally, the buyer will settle the full payment using an endorsed cheque.
The book value of the investment in ACC’s financial statements amounted to SAR 57.2 million as on Sept. 30, 2020, while the investment’s primary value stood at SAR 42.7 million.
The deal falls within the company’s strategy to exit non-core investments, the statement added.
The relevant financial impact will likely appear as of Q3 2021 financials, while the sale proceeds will be used to support ACC’s internal resources.
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