Jabal Omar shareholders approve capital increase to SAR 11.55 bln via debt conversion

Logo of Jabal Omar Development Co.

Jabal Omar Development Co.’s (JODC) shareholders approved the board’s recommendation to increase capital by 24.22% from SAR 9.29 billion to SAR 11.55 billion, during the extraordinary general meeting (EGM) held on Aug. 25, according to a bourse filing.

This will be done through converting SAR 5.30 billion of debt owed by the company to Alinma Makkah Real Estate Fund.

Accordingly, shareholders approved the terms of the transaction agreement, the proposed amendments to the company’s bylaws related to the transaction, and also approved authorizing the current board of directors, or any person authorized by the board of directors, to take any decision, or action as necessary as it may be to implement the above-mentioned decisions.

Shareholders also approved appointing Mazen Fawaz Baghdadi as an independent board member until the end of the current board term on June 29, 2024. The appointment came as one the transaction terms.

They ratified the businesses and contracts which will be concluded between the company and the fund, in which some board members have interest, namely, Abdulraouf Mohammed Mannaa, Ahmad Othman AlQasabi, Hesham Abdulaziz AlZaid, Abdulaziz Sulaiman AlRajhi, Mohanned Saud AlRasheed, and Mohammed Sultan AbuMelha.

Issuing new shares for the fund unitholders will come in exchange of settling debt and obligations owed by the company to the fund, transferring ownership of the fund’s assets to JODC, releasing the mortgaged properties, and terminating all collateral and security granted by the company to the fund and the fund related entities.

The transferred assets include three hotels; Hilton Suites, Hyatt Regency, and Conrad and the two commercial properties are Souk Al-Khalil S1 & S2.