Alandalus recommends 33.33% capital hike via bonus issue, approves dividend policy until 2023

Alandalus Property Co.’s board of directors, during a meeting on April 29, 2021, recommended increasing the company’s capital by 33.33% to SAR 933.33 million from SAR 700 million, through bonus share distribution.

Fraction bonus shares will be aggregated in one portfolio for all shareholders and sold at the market price, sale proceeds of which will be distributed to shareholders who are entitled to bonus shares, on pro rata basis, within a period not exceeding 30 days from the date of determining the due new shares for each shareholder.

The bonus shares shall be subject to approval of the official entities and the extraordinary general assembly meeting (EGM) regarding the capital increase and the number of bonus shares.

In a separate statement to Tadawul, the company announced that its board of directors approved the dividend distribution policy for 2021, 2022 and 2023, which will be presented for approval during the upcoming EGM, the date of which will be announced later.

Alandalus intends to distribute 60% of its annual net profits for 2021, 2022 and 2023, on a semi-annual basis.

However, this policy is subject to change based on the following factors:

- Any material change in the company’s strategy and business.

- Cash flows, new capital investments, and future expectations of external financing, taking into account maintaining a robust liquidity policy to meet any abrupt changes.

- Any restrictions on distribution under any financing loans the company plans to enter into.

- Any other legal or regulatory considerations.