The board of Saudi Arabia's mall operator Abdullah Al Othaim Markets Co has approved the offer submitted by Al Othaim Holding Co. to acquire its entire stake in Abdullah Al-Othaim Investment Co. (AOIC) for 846.54 million riyals ($226 million).
Al Othaim Markets stock was trading 3 percent higher at 110.6 riyals around 11:00 am on Wednesday on Riyadh’s Tadawul exchange.
Earlier this month Al Othaim Holding Co. had bid to acquire the company’s 13.65 million shares, or 13.65 percent in AOIC, after cancelling plans for an IPO and to list its shares on the stock exchange.
Al Othaim Markets said in a statement to Tadawul on Wednesday, it expects capital gains of 593.34 million riyals after Zakat. The gains will be distributed as dividends to shareholders, it added. Al Othaim Markets acquired its stake in AOIC in 2005 for 85 million riyals and has since received total dividends of up to 163 million riyals.
The transaction 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.
The book value of AOIC according to the latest reviewed interim financial statements for the first quarter of 2022 stood at 237.99 million riyals.
AOIC had revenues of 22.45 million riyals in 2019, 13.3 million riyals in 2020 and 29.5 million riyals in 2021, according to the disclosure.
(Reporting by Brinda Darasha; editing by Daniel Luiz )