Ash-Sharqiyah disapproves capital hike for Riyadh property acquisition

The extraordinary general assembly meeting of Ash-Sharqiyah Development Co. refuted the board of directors’ recommendation to increase capital from SAR 75 million to SAR 120 million to finance the acquisition of 2 realty assets in Riyadh.

However, the meeting approved the amendment of Article (3) of the company’s articles of association related to its objectives, according to a bourse statement.

According to data compiled by Argaam, the Capital Market Authority (CMA) approved on Dec. 5, 2019, Ash-Sharqiyah's request to increase its capital from SAR 75 million to SAR 120 million by issuing 4.5 million ordinary shares to acquire 2 real estate assets.

In May 2019, Ash-Sharqiyah signed a property purchase agreement with Omar Saleh Babekar to acquire 2 income-generating real estate assets in Riyadh.