AlBaha Investment & Development Co. (AlBaha) shareholders have approved buying out Al-Marakiz Al-Raqiyah Ltd through issuing 14.5 million new ordinary shares.
Last March, the company extended the acquisition agreement for Al-Marakiz Al-Raqiyah Ltd. until July 2, 2017 to complete the required procedures. The Saudi investment firm inked an agreement in October— which expires on March 31, 2017— to buy the supermarket operator for SAR 145 million.
AlBaha was able to extend the agreement after the CMA approved its plans for the capital raise, which aims to raise capital to SAR 295 million from SAR 150 million by issuing 14.5 million ordinary shares, in order to be able to complete the acquisition.
Capital Increase Details Post-Acquisition |
|
Current Capital |
SAR 150 million |
New Capital |
SAR 295 million |
Number of shares |
15 million shares |
New number of shares |
29.5 million shares |
Percentage of capital |
96.67% |
The company’s shareholders also approved reducing its capital by 40 percent from SAR 295 million to SAR 177 million to offset accumulated losses. Al Baha’s shares will be cut from 29.5 million to 17.7 million by cancelling four shares for every ten outstanding shares.
Capital Reduction Details |
|
Current Capital |
SAR 295.0 million |
Number of shares |
29.5 million shares |
Capital cut percent |
40% (or 4-for- 10 share) |
New capital |
SAR 177.0 mln |
New number of shares |
17.7 mln shares |
Method of capital cut |
Cancelling 11.8 mln shares |
Reasons |
Offsetting accumulated losses |
Comments
{{DisplayName}}
{{ElapsedTime}}