Riyadh Development issues shareholders circular on capital hike to buy 2 real estate assets

Logo of Riyadh Development Co.

Riyadh Development Co. issued today, Jan. 13, the shareholders circular as regards its capital increase from SAR 1.78 billion to SAR 2.34 billion, through issuing 56.15 million ordinary shares for the purpose of buying two real estate assets owned by Remat Al-Riyadh Development Co.


The purchased assets are a 787,480-square-meter (sqm) land plot north of Dammam Road, Al-Rimal District, and a 214,000-sqm plot south of the Northern Ring Road, Al-Murooj District.

 

Deal Details

Market Value

 

As of Aug. 29, 2024, the agreed date for determining new shares, the company’s market value stands at SAR 4.44 bln

Capital before increase

 

SAR 1.78 bln

Number of shares before increase

 

177.78 mln

Increase value

 

SAR 561.53 mln

Percentage increase

 

31.58%

New Capital

 

SAR 2.34 bln

Number of shares after Increase

 

233.93 mln

Price of compensation shares

 

SAR 10

New shareholders’ ownership post-acquisition​

 

100%

Ownership percentage of shareholders to whom new shares will be issued after conclusion of the Acquisition

 

24%
 
The table below shows the timeframe of the deal completion:

 

Timeframe for Deal Completion

EGM approval

 

Feb. 3, 2025 (If the EGM approval on the transaction is issued at the first or second meeting.

 

Feb. 27, 2025 (If the EGM approval is issued at the third meeting, as the case may be.

Conveyancing the real estate assets to the company and issuing new title deeds that evidence the company’s ownership of the real estate assets

 

As soon as possible from the approval date by the extraordinary general assembly.

Listing the consideration shares on the Saudi Exchange (Tadawul) and allocating them to the Seller

 

 

 

 

As soon as possible from conveyancing the real estate assets, which is expected to occur within two trading days from the date of conveyancing the real estate assets

Amending the company’s commercial registration and providing the Ministry of Commerce with the amended  bylaws.

 

 

 

 

 

Within 30 days from the date of transaction completion, which is expected to occur on:

 

- March 5, 2025 (If the EGM approval on the transaction is issued at the first or second meeting.

 

- March 30, 2025 (If the EGM approval is issued at the third meeting, as the case may be.
 

Riyadh Development signed, on Sept. 1, 2024 an agreement to acquire two real estate assets from Remat Al-Riyadh Development Co. through a capital increase aimed at the issuance of new shares to the seller in exchange for these in-kind assets.

 

For more news and details on M&As

 

The total agreed value of the seller's assets is SAR 1.4 billion, excluding real estate transaction tax.

 

The transaction involves a related party, as Remat Al-Riyadh is fully owned by Riyadh Municipality, represented by Riyadh Development’s Chairman.

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