Al-Baha acquiring Al-Marakiz to help narrow losses, says CEO

Al-Baha Investment and Development Company’s acquisition of Al-Marakiz Al-Raqiyah Limited, a mall developer, will help reduce its losses, Ibrahim bin Kulaib, Al-Baha’s CEO, told Al Arabiya television.

Al-Marakiz currently has a 10-year commercial land rental agreement worth SAR 67 million, he said. When it expires, the ownership of a commercial complex on that land will be transferred to Al-Baha, which will help boost the equity of stockholders.

Al-Baha signed on Sunday a deal to buy Al-Marakiz, an operator of supermarkets, commercial and residential complexes and hotels, for shares with a par value of SAR 145 million.

Al-Baha shares will be issued to shareholders in Al-Marakiz— which is also known as High End Centers— bringing the number of Al-Baha’s outstanding shares to 29.50 million from 15 million.