Tourism Enterprises Company (Shams) and Shuaa Capital Saudi Arabia Company agreed to end the memorandum of understanding (MoU) that was penned in February 2022 at a value of SAR 735 million.

The two entities failed to reach an agreement, under which Shams was supposed to fully acquire three hotels in Riyadh, Jeddah, and Dammam, according to a bourse filing.

The Tadawul-listed firm announced the expiry of the MoU on 30 November this year.

Last November, Shams raised its capital to SAR 578.23 million from SAR 52.56 million through a rights issue of SAR 525.66 million after obtaining the shareholder’s approval for the transaction.

In the first nine months (9M) of 2022, Shams incurred net losses after Zakat and tax worth SAR 1.23 million, lower by 91.23% than SAR 14.04 million in 9M-21.

Revenues shrank by 40.28% to SAR 7.29 million in January-September 2022, compared to SAR 12.21 million in the year-ago period.

The loss per share stood at SAR 0.25 in 9M-22, versus SAR 1.39 in 9M-21.

Meanwhile, the accumulated losses amounted to SAR 1.35 million as on 30 September 2022, accounting for 2.58% of the SAR 52.56 million capital.

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