Al Arabia says MBC Group exercises purchase option, ups stake to 20%

Logo of Arabian Contracting Services Co.

Arabian Contracting Services Co. (Al Arabia) announced that MBC Group Holdings Ltd., a major shareholder, exercised its purchase option to 15% of the company’s capital from another substantial holder, Engineer Holding Group (EHG), according to a filing to Tadawul.

Accordingly, MBC’s ownership in Al Arabia will increase to 20%, while EHG’s sake will decline from 65% to 50%.

A share purchase agreement was signed between MBC and EHG on Sept. 15 as regards the share transfer. The transaction will be implemented as soon as all applicable procedures and requirements are satisfied.

According to Al Arabia’s prospectus, the purchase option is effective for three years starting from Jan. 1, 2021. MBC may exercise the purchase option one time only.

The transaction reflects MBC’s confidence in Al Arabia’s current performance, and the strong positive prediction of its future growth.

The major shareholders’ stakes will be changed on Tadawul website once the transaction is completed.

Listed in November 2021, Al Arabia stated in its prospectus that MBC may acquire 15% from EHG’s stake in the company’s capital, according to data available with Argaam.

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