Anaam inks pact to sell Al-Jouf project lands for SAR 85 mln, expects capital gain of SAR 21.9 mln

Logo of Anaam International Holding Group  

Anaam International Holding Group signed, on Sept. 29, a contract to sell the lands of the Al-Jouf project to Khaled Mustafa Mohamed Monem for an amount of SAR 85 million. 

The land, which has an area of 100 million square meters, consists of 55 plots of land, as well as all equipment, machinery, buildings and cars in the Al-Jouf project the company said in a bourse statement. 

Under the agreement, SAR 25 million will be paid upon signing the sale contract, SAR 35 million will be paid one week later, SAR 15 million after a period of one month with the remaining amount to be paid on two installments of SAR 5 million each after three months and six months from the signing date. 

The contract also stipulated that the buyer loses the down payment in case of any default in payment. 

The land has a book value is SAR 63.07 million, accordingly, the sale will result in a capital gain of SAR 21.93 million that will be reflect on Anaam’s Q3 2021 financials immediately upon completing the transaction, the statement added. 

The sale proceeds will be used to finance the company's future plans, which aim to enter into other sectors that contribute to maximizing the return to the company's shareholders. 

This step comes with in the company’s plan to exit the agricultural sector and focus on its strategy to explore other sectors, Anaam said, indicating that the deal doesn’t include any related parties. 

Earlier today, the Saudi Exchange (Tadawul) announced halting trading of Anaam’s shares starting from today, Sept. 29, until the end of the current trading session ahead of disclosing a significant event, according to data available on Argaam.