Farm Superstores receives remaining SAR 20 mln on Lebanon subsidiary sale

Saudi Marketing Co. (Farm Superstores) announced on Sunday that its chairman, Hazem Al Aswad, repaid the remaining dues worth SAR 20 million, to the company following the sale of the latter’s entire stake in Lebanon-based Saudi Marketing and Trading Co. Holding Co.

The company clarified in a statement to Tadawul that the amount will be used to finance the firm’s activities, and repay a part of the outstanding loans.

The annual financial statements for fiscal year 2018 and the report submitted by Al Aswad to the general assembly last May, showed a gain of SAR 3.79 million on the sale of the company’s entire stake in the Lebanese subsidiary.

Accordingly, no financial impact is expected in 2019, the statement added.

In November 2018, the company’s shareholders approved the contracts concluded with chairman Hazem Al Aswad, including the above mentioned deal at a total value of SAR 115.89 million, according to data compiled by Argaam.

The amount represents the net book value of the company's stake in the subsidiary as of Dec. 31, 2017.

An amount of SAR 55.89 million was paid upon completion of the deal, in addition to a SAR 40 million in September 2019.