BAAN shareholders to vote on capital hike to acquire real estate assets on April 23

Logo of BAAN Holding Group Co. 

BAAN Holding Group Co. is set to hold an extraordinary general meeting (EGM) on April 23, to vote on the company’s acquisition of real estate assets from Al Oula Real Estate Development Co.

The company, in return, will increase its capital by SAR 65.58 million through issuing 65.58 million ordinary shares in favor of Al Oula Real Estate, and allocating them to three companies, Awj Al-Mada Company for Real Estate Development and Investment, Awj Al-Majal Co., and Awj Al-Shati Co.

This comes in accordance with the provisions of the real estate sale and purchase agreement signed with Al Oula Real Estate and Ajdan Real Estate Development Co., acting as guarantor for Al Oula Real Estate, on Dec. 29, 2024.

The real estate assets comprise 86 residential units representing all of the residential units located in the Mid-Rise component of the Ajdan Waterfront Project Tower in Al Khobar, with a total area of approximately 12,000 square meters, located on Corniche Road, Al Khobar. This comes in accordance with the details set out in the shareholders' circular which will be published on Tadawul website sufficiently in advance of the EGM date.

Further, shareholders will vote on acquisition of real estate assets from Abdul Mohsen Abdulaziz Al Hokair Holding Group Co. (Al Hokair Holding). This will come in consideration of the company increasing its capital by SAR 239.39 million and issuing 239.39 million ordinary shares and allocating them to Al Hokair Holding.

The real estate assets comprise three hotels as well as the land and real estate assets on which they are located, namely the DoubleTree by Hilton Hotel in Riyadh, Al Murooj District, the Radisson Blu Hotel Corniche in Jeddah, South Obhur District, and the Holiday Inn Jeddah Gateway Hotel in Jeddah, An Nuzha District.

This come in accordance with the details set out in the shareholders' circular which will be published on Tadawul website sufficiently in advance of the EGM date.

The implementation of this item is contingent on Al Hokair Holding obtaining written approval, before this assembly, from all banks in favor of which the assets included in the Al Hokair transaction have been mortgaged. Such mortgages will be released prior to the transfer of the assets from Al Hokair Holding to the company During the EGM, shareholders will also vote on the business and contracts to be executed during 2026 between the company and Al Hokair Holding, in which Chairman Sami Alhokair, and Vice Chairman Faisal Al-Malik, have an indirect interest. These transactions relate to the acquisition of three major hotels, without any preferential terms or special advantages. The total value of the transaction amounts to SAR 651.62 million.