Retal extends SSA with Al Fozan to acquire entire stake in Ajdan

Logo of Retal Urban Development Co. 

Retal Urban Development Co. agreed, on Aug. 2, to extend until Dec. 31 its share swap agreement (SSA) with Al Fozan Holding Co. to acquire the latter’s stake in Ajdan Real Estate Development Co., through a capital increase by issuing new shares to Al Fozan.

The extension will allow additional time to fulfil the conditions stipulated in the agreement, Retal said in a Tadawul statement.

In February, Retal signed the SSA with Al Fozan to acquire its entire stake in Ajdan Real Estate. Retal will acquire 14.25 million ordinary shares, representing 47.5% of Ajdan’s share capital, in exchange for issuing new ordinary shares to Al Fozan Holding, Argaam earlier reported.

At the time, the company valued Ajdan at SAR 1.86 billion, and the value of the shares being acquired amounted to SAR 881.65 million.

At the time, the company valued Ajdan at SAR 1.86 billion, while the value of the shares being acquired amounted to SAR 881.65 million.

For the purpose of the transaction, Retal was valued at SAR 8.02 billion, based on the 90-calendar-day volume-weighted average price (VWAP) of its shares for the period from Jan. 20, 2025, to June 1, 2025, equivalent to SAR 16.03 per share.

Retal’s share capital will be increased by 11% from SAR 500 million to SAR 555 million to facilitate the transaction, as shown below: