Al Othaim sells Madinah idle land for SAR 211.3 mln, expects SAR 107.9 mln capital gain

Logo of Abdullah Al Othaim Markets Co.

Abdullah Al Othaim Markets Co.’s board of directors approved the sale of the company’s idle land in Madinah to Abdullah Al Othaim Investment Co. for SAR 211.33 million, excluding the real estate property tax.

The 105,664-square-meter (sqm) land was sold at SAR 2,000/sqm without any preferential terms, the company said in a bourse statement.

The completion of the deal is subject to the approval of the company’s general assembly.

The price will be paid within a period not exceeding 90 days from the date of obtaining shareholders’ approval.

The book value of the asset, according to the latest reviewed interim financial statements, is SAR 100.7 million, Al Othaim said, expecting a capital gain after Zakat of SAR 107.9 million on sale of the land.

The deal comes within the company’s plan to focus on its main business and other integrated activities.

Excess cash from this transaction, over the company needs, will be paid as a cash dividend to shareholders, the statement added.

The related parties include Chairman Abdullah Saleh Al-Othaim and board member Abdulaziz Abdullah Al-Othaim.