AlBaha Investment and Development Co.’s accumulated losses will drop to 62% of capital after completing the acquisition of Al-Marakiz Al-Raqiyah Ltd., CNBC Arabia has reported, citing AlBaha board member Ibrahim Bin Abdullah Bin Kulaib.
The company’s accumulated losses have reached SAR 185 million, or 123 percent of capital.
AlBaha announced on Tuesday that it had extended the acquisition agreement for Al-Marakiz Al-Raqiyah Ltd. until July 2, 2017 to complete the required procedures.
The company said it was able to extend the agreement after the Capital Market Authority (CMA) approved its plans to raise capital to SAR 295 million from SAR 150 million, in order to be able to complete the acquisition.
The extension will enable the firm to offset its accumulated losses and increase revenue, Bin Kulaib said.
AlBaha also plans to pay dividend in 2020, he added, noting that the company introduced new business activities during 2015 and 2016 which increased revenue.
In addition, the Saudi investment firm is expected to consolidate Al-Marakiz Al-Raqiyah’s revenues after the acquisition, which may help in offsetting AlBaha’s accumulated losses.
AlBaha had inked an agreement in October— which expires on March 31, 2017— to buy the supermarket operator for SAR 145 million.
Comments
{{DisplayName}}
{{ElapsedTime}}