Riyadh Development says stake sale reflects strategy review, supports operations

Logo of Riyadh Development Co. (ARDCO)

Riyadh Development Co. (ARDCO) said the sale of its entire units in Al Arabi Riyadh Development Real Estate Fund to Sumou Holding Co. comes as part of a review of its strategic priorities.

In a statement to Tadawul, the company added that the proceeds will be used to execute its strategic plan, support financial and investment activities, and achieve targeted returns.

It noted that, subject to approval of the upcoming general assembly, the deal will lead to contracts and procedures that will be announced in due course.

The company signed last week an agreement to sell all its units in the fund to Sumou Holding for SAR 184.5 million, according to Argaam’s data.