Al Othaim’s board approves Riyadh land sale for SAR 186.6 mln, expects SAR 93.2 mln profit

Logo of Abdullah Al Othaim Markets Co.

Abdullah Al Othaim Markets Co.’s board of directors approved the sale of the land owned by the company in Riyadh to Abdullah Al Othaim Investment Co. for SAR 186.6 million, excluding the real estate property tax.

The vacant land with an area of 44.421 square meters (sqm) was sold at SAR 4,200 per sqm, the company said in a statement to Tadawul.

The transaction is subject to the shareholders’ approval, the statement noted, adding that the transaction price will be paid within 90 days from the date of approval by the general assembly.

The book value of the asset, according to the latest audited interim financial statements for H1 2022, is SAR 86.62 million. 

Al Othaim expects to realize capital gains of SAR 93.23 million, after Zakat. 

The reasons for the deal include focusing on the company's main business and other complementary activities. 

Excess cash from the proceeds will be paid as cash dividends to shareholders, according to the board’s discretion.

Chairman Abdullah Saleh Al-Othaim and board member Abdulaziz Abdullah Al-Othaim are related parties to the transaction, the statement noted, adding that there were no preferential terms.