Saudi Marketing Co.’s (Farm Superstores) board of directors has recommended selling the company’s entire stake (99.5%) in its Lebanese subsidiary, Saudi Marketing and Trading Co. to chairman, Hazem Al Aswad, for SAR 115.89 million.
This sum represents the net book value of the company’s stake in its Lebanese unit as on Dec. 31, 2017, the company said in a bourse filing.
A total of SAR 55.89 million will be paid upon concluding the deal, while the remaining sum will be settled in two payments at SAR 30 million each on Oct. 1, 2019 and Oct. 1, 2020.
The loss-making business cost the company some SAR 3.17 million in 2017, SAR 3.22 million in 2016, and SAR 2.24 million in 2015.
The sale proceeds will go for financing the company’s expansions in addition to fulfilling the working capital requirements.
The Lebanon-based subsidiary owns and operates a commercial mall, namely Beirut Mall.
The offer remains to be assessed and reviewed by the general assembly, the company said.
The relevant financial impact, related to deconsolidating the divested asset, will be revealed later.
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