Al-Baha shareholders nod purchase of 13.04% of Elegant Centers

Logo of Al-Baha Investment and Development Co.

Al-Baha Investment and Development Co.’s shareholders approved the purchase of 750,000 shares, or 13.04%, of the subsidiary Elegant Centers, during the ordinary general meeting (OGM) convened on Sept. 30.

This was according to the contract signed with the seller, Mishal Mufti, a board member and related party.

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Al-Baha will pay the purchase value within a calendar year from the date of access, the company said in a statement to Tadawul, adding that it has the right to extend the payment term for one year or more upon notifying the seller in writing.

Al-Baha will pay 20%, or SAR 3.92 million, on the effective share transfer date. The remaining 80%, or SAR 15.68 million, will be paid during the year or any extended payment term.

The seller will have the right to terminate the agreement and recover shares if the buyer fails to pay the deal value within the specified deadline.

Al-Baha explained that the deal aims to own minority shares in subsidiaries to become a 100% owner.

The shareholders also approved to convert the subsidiaries, namely Elegant Centers and Ishraqa Regional Real Estate Development and Investment Co., into branches of Al-Baha, in case of obtaining approval on the Elegant Centers share purchase.