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Saudi Marketing Co. (FARM Superstores) said that its board chairman, Hazem Al Aswad, has paid a total of SAR 40 million from his dues to the company in lieu of purchasing the company’s entire stake in a Lebanon-based affiliate.
The amount was used to finance the company's activities, with the remaining balance of SAR 20 million to be repaid by a maximum of Dec. 31, 2019, according to a pledge letter from the company's chairman, the company said in a bourse statement.
The annual financial statements for the fiscal year ended Dec. 31, 2018 and the report submitted by the chairman to the general assembly held last May, showed a SAR 3.8 million capital gain on the sale of the company’s entire stake in Lebanon-based Saudi Marketing and Trading Co. Holding Co.
Last November, the company’s general assembly approved the work and contracts that will be concluded between the company and the chairman Hazem Al Aswad, including the above mentioned deal at a consideration of SAR 115.89 million, which represents the net book value of the company's share in the subsidiary as of Dec. 31, 2017.
An amount of SAR 55.89 million was paid upon completion of the purchase, with the balance to be paid in two equal installments of SAR 30 million each on October 1, 2019 and October 1, 2020.
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