Retal seeks CMA nod for capital hike to acquire Al Fozan’s Ajdan stake

Logo of Retal Urban Development Co.

Retal Urban Development Co. said it submitted a request on March 15 to the Capital Market Authority (CMA) to increase its capital to acquire a stake in Ajdan Real Estate Development Co.

In a statement to Tadawul, the company said it plans to raise its capital to SAR 555 million from SAR 500 million by issuing 55 million new shares to Al Fozan Holding Co. in exchange for its entire stake in Ajdan.

Retal said it will announce any material developments related to the transaction in due course.

According to Argaam data, Retal signed a share-swap agreement with Al Fozan in February to acquire its full stake in Ajdan, equivalent to 14.25 million shares, representing 47.5% of Ajdan’s capital, in exchange for issuing new shares.