Al Arabia says MBC to retain 15.1% stake

Logo of Arabian Contracting Services Co. (Al Arabia)

Arabian Contracting Services Co. (Al Arabia) said that MBC Group Co. —a major shareholder in Al Arabia.—sold part of its stake.

In a statement to Tadawul, the company noted that the decision is a strategic step by MBC to meet its financial obligations and strengthen its financial position, as stated in its Tadawul announcement and prospectus.

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The group will retain a 15.1% stake in Al Arabia as an investment in an associated company and the remaining shares held by MBC will be subject to a six-month contractual lock-up undertaking, starting from the transaction execution date.

According to data compiled by Argaam, MBC sold, on Oct. 20, part of its stake in Al Arabia, comprising 2.45 million shares, or 4.9% of Al Arabia's share capital, to several investors.

As many as 104 negotiated deals were executed on Al Arabia stock, with about 2.45 million shares traded, or 4.9% of the company's 50 million share capital, at a total value of about SAR 416.5 million.