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Jabal Omar Development Co. signed debt settlement agreements with Central District Cooling Co. (CDDC) and Makkah Construction and Development Co. (MCDC) to convert over SAR 547.5 million of debt into new shares through a proposed capital increase.
In a Tadawul statement, the company said it intends to settle SAR 547.50 million of debt through these agreements, improving liquidity and financial indicators, as well as the ability to achieve its growth objectives. The capital increase will not require any cash contribution from the company’s shareholders.
The first agreement, signed today, Dec. 20, 2023, settles SAR 237.93 million in debt for the CDDC by issuing new shares, determined by the closing price before the extraordinary general meeting, subject to regulatory, third-party approvals, and general assembly consent.
The second agreement, signed today, converts SAR 309.56 million of debt for the MCDC into new shares, based on the closing price prior to the extraordinary general meeting, requiring similar approvals and consent.
Both creditors are related parties: MCDC is a major shareholder, while CDDC is a subsidiary.
Details will be disclosed in a forthcoming shareholders' circular after receiving the necessary approvals.
The company will publicly disclose any further developments related to these potential agreements.
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