Al Othaim approves selling full stake in investment arm to Al Othaim Holding for SAR 846.5 mln

Logo of Abdullah Al Othaim Markets Co.

Abdullah Al Othaim Markets Co.’s board of directors approved, on July 7, the offer submitted by Al Othaim Holding Co. to acquire the former’s entire stake in Abdullah Al-Othaim Investment Co. (AOIC) for SAR 62 per share, totaling SAR 846.54 million.

Al Othaim Holding bid for acquiring the company’s 13.65 million shares, or 13.65% of Al Othaim Investment.

The company expected capital gains of SAR 593.34 million after Zakat. The excess funds will be distributed as dividends to shareholders, Al Othaim Markets said in a statement to Tadawul today, July 13.

The deal completion is subject to the approval of the company’s shareholders. The full value of the sale will be made within 90 days maximum from the general assembly’s approval date.

Al Othaim Holding operates in real estate investment field, the company elaborated, noting that the deal has no preferential terms.

The book value of AOIC according to the latest reviewed interim financial statements for the first quarter of 2022 stood at SAR 237.99 million.

Based on the company’s audited financial statements, the revenues of AOIC reached SAR 22.45 million in 2019, SAR 13.3 million in 2020 and SAR 29.5 million in 2021.

The deal was driven by the company’s goal to focus on its core business and other integrated activities.

Moreover, Al Othaim Markets added that Chairman Abdullah Saleh Al-Othaim and board member Abdulaziz Abdullah Al-Othaim are related parties to the deal.

Al Othaim Markets started in 2005 investing SAR 85 million in AOIC. The total dividends received by the company from this investment up to date are equal to SAR 163 million.

Al Othaim Holding owns a 33.67% stake in the Tadawul-listed Al Othaim Markets and holds 60.35% of Al Othaim Investment, according to Argaam’s date.

AOIC scrapped plans for an initial public offering (IPO) of 30% of its capital on the main market, Argaam reported.