Abdullah Al Othaim Markets Co. announces the recommendation of the board of directors to sell a shopping mall in Ha'el city. The Mall was built on a land with a total area of 65,110 square meters and GLA of 61,368 square meters. of value SAR 361.2 Millions as following:
1.details of the deal : Sale of Company-owned shopping mall located in Ha'el City. The selling price has been determined in the light of the market price, based on the highest value among the appraisals conducted by three independent real estate valuation professionals.
2.the deal conditions : No Significant conditions
3.the deal parties : Abdullah Al Othaim markets Company and Abdullah Al Othaim for Investment and Real Estate Development (a related party to the Chairman of the Board Mr. Abdul Saleh Alothaim and a member of the Board Mr. Fahad Abdullah Al Othaim)
4.Method of the Financing deal : Value to be paid upon transferring the title deed to the buyer
5.details of the main asset operations : Shopping mall for leasing
6.Deal reasons :Focus on the core business
7.Expecting impact on the company operations : Gross capital gains SR 112.1 million
8.Declare of proceeds from asset selling : Financing Company expansions.
Additional Notes:
The book value of the sold asset is SR 249.1 million,
Due to the fact that the Company owns 13.65% in the capital of the buyer, the net financial impact after eliminating the unrecognized profit as a result of this ownership will be SR 96.8 million.
This impact will be reflected in the period when the necessary procedures are completed which is expected to take place in the first quarter 2017.
Since this transaction is considered to be with a related party, the pre-approval will be obtained from the General assembly of Shareholders according to the regulations.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.