Al-Baha buys partner’s subsidiary ownership for SAR 19.6M

The agreement involves buying 750,000 shares, or 13.04% of Elegant Centers’ share capital, for SAR 19.6 million. The deal will be financed from the company’s cash balance.

The deal is subject to obtaining the approval of Al-Baha’s shareholders on the deal terms and other regulatory approvals to finalize the ownership transfer.

Al-Baha shall pay the agreed-upon value within a year, provided that 20%, or SAR 3.92 million, is paid immediately on the signing date. The company is eligible to extend the payment term for one year or more upon notifying the seller in writing. The remaining 80%, or SAR 15.68 million, will be paid during the year or any extended payment term.

The seller shall have the right to immediately terminate the agreement and recover shares if the buyer fails to pay the deal value within the specified deadline.

The deal aims to boost the company’s profitability and shareholders’ equity. The relevant financial impact will likely lead to a decline in Zakat allocations and boosting profit.

Board member Mufti is a related party to the deal, the statement said.