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Logo of Tourism Enterprise
Tourism Enterprise Co. (Shams) announced the preliminary ruling by the Commercial Court in Riyadh, on March 4, 2021, dismissing the company's lawsuit against the founders of Hemaia Group, according to a bourse filing today, March 31, 2021.
The company’s lawyers received the initial verdict on March 14, 2021, noting that the initial ruling was not issued unanimously, and the lawyers expect the appeal to the judgment, filed before the Commercial Appeals Court, to be successful.
In the event that the case is lost, there is a financial impact not exceeding SAR 5.62 million, which is the share of Shams in the capital of Hemaia Group.
The lawsuit was filed on Oct. 3, 2019, to protect the rights of the company and its shareholders, Shams said.
Future developments will be announced in due course.
In June 2019, Shams announced that it had acquired a 53% stake in Hemaia Group, Argaam reported.
In July 2019, Shams board of directors decided to withdraw from the acquisition deal, due to financial liabilities on Hemaia Group that were not disclosed by its owners.
The firm said Shams moved quickly to rectify the matter and did not transfer any cash to date to Hemaia Group.
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