Banan board approves setting up SAR 44.1M subsidiary

Banan will hold a 60.47% stake in the new company, while the remaining shares will be held by other investors, the company said in a statement to Tadawul.

The other investors are Mohammed Al-Suwailem, holding a 9.30% stake (related party – shareholder in a subsidiary); Abdulaziz Al-Suwailem (9.30%); Ahmed Al-Haqbani (6.98%) (related party – major shareholder); Abdulmohsen Al-Haqbani (4.65%) (related party – Chairman); Bader Al-Haqbani (2.33%) (related party – CEO of a subsidiary); Munira Al-Haqbani (2.33%); and Jawaher Al-Haqbani (4.65%).

The board also approved the appointment of Majed Al-Nasser, CEO of Banan, as the general manager of the new company.

The new subsidiary’s financial statements will be consolidated with Banan’s upon completion of the incorporation process and once control is established, in accordance with the International Financial Reporting Standards (IFRS) adopted in Saudi Arabia.

The subsidiary will primarily focus on land acquisition and development, as well as real estate development and investment, in line with Banan's strategy to expand its real estate projects and strengthen its investment property portfolio, the statement said.