Dur sells its Makarem stake to Knowledge City for SAR 27 mln

Dur Hospitality Co. on May 2 sold its 50 percent stake in Makarem Al Marefaa Hospitality Co., or 1.07 million shares, to Knowledge Economic City (KEC) for a total value of SAR 27.42 million, both companies said in separate bourse statements.

Dur will transfer its holding in Makarem will full rights and liabilities.

The hospitality firm said that it expects no material financial impact from this divestment on Q2 2019 results, adding that the sale proceeds will be used in operations.

The divestment decision comes as part of the company’s investment strategy in Makkah and Madinah.

On the other hand, KEC will raise its stake to 100 percent in Makarem’s capital, which amounts to SAR 21.4 million.

KEC will acquire Dur’ equity after the settlement of the latter’s debt and credit balances based on audited financial statements for 2018.

Dur’s shares will be transferred to KEC in the second quarter of the year.

The deal will be financed from the company’s internal resources, KEC said, adding that it expects no material financial impact from the acquisition.

Makarem owns SAR 55 million in assets, including a 10,500 square meter-land plot in KEC, the statement added.