Taiba Holding Co. has inked a conditional agreement to buy out its subsidiary, Arab Resort Areas Co.’s (ARAC), entire stake in Al Aqeeq Real Estate Development Co. for SAR 63 million, the company said in a statement to Saudi bourse, Tadawul.
Upon completion of the deal, Taiba will raise its direct ownership in the developer to 98.01 percent.
Al Aqeeq’s fair value was defined at SAR 21/share, totaling SAR 62.98 million, to be paid in cash.
The sale transaction is subject to the approval of the companies’ extraordinary general meetings.
Taiba board members, namely Waleed Mohammad Al-Issa; Turki Al-Sudairi, and Ghassan Shalaby will be related parties, and will be granted some privileges pertaining to the deal.
The relevant financial impact will appear in Taiba’s earnings for H2 2017.
Last January, Taiba Holding Co. signed a memorandum of understanding (MoU) with shareholders of Al Aqeeq Real Estate Development to acquire an 8.1 percent stake in the company for SAR 255.23 million, data compiled by Argaam showed.
ARAC reported an 89 percent plunge year-on-year in net profit to SAR 17.9 million for the fiscal year 2016, due to its booking one-off gains of SAR 142.8 million in 2015.
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