Taiba buys stake in Al Aqeeq, takes over ARAC

Taiba Holding Co. has inked an agreement to acquire an 8.1 percent stake valued at SAR 255.2 million in Al Aqeeq Real Estate Development Co., and to purchase an equity of 12.31 percent, valued at SAR 106.4 million in Arab Resort Areas Co.’s (ARAC), the company said in a statement to Saudi bourse, Tadawul.

Taiba will raise its equity in Al Aqeeq from 91.89 percent to 100 percent, and its stake in ARAC from 86.87 percent to 99.20 percent upon completing the acquisition.

Al Aqeeq has a market value of SAR 3.1 billion, while ARAC’s market value reaches SAR 725 million.

Taiba will increase capital by 6.92 percent from SAR 1.5 billion to SAR 1.6 billion through issuing 10.4 million shares, valued at SAR 34.85 each, at a swap ratio at 0.60 a share for Al Aqeeq shareholders, and a swap ratio of 0.50 a share for ARAC shareholders.

The acquisition came as part of Taiba’s revamp strategy for 2017-2021, in line with Saudi Vision 2030.