Jabal Omar submits request to Alinma Makkah Fund to extend deadline for acquisition deal

Logo of Jabal Omar Development Co.

Jabal Omar Development Co. announced that it submitted a notification to the fund manager of Alinma Makkah Real Estate Fund to extend the period during which the binding agreement regarding the acquisition of the fund’s assets and the full settlement of the rights and obligations in exchange for the new shares to be issued to the unitholders in the company will be executed.

Jabal Omar said in a bourse filing that that the agreement can be signed once the fundamental changes to the fund terms and conditions take effect.

The company will announce any further material developments in relation to the transaction in a timely manner as required by the relevant laws and regulations.

According to data compiled by Argaam, Alinma Makkah Real Estate Fund’s unitholders approved applying fundamental changes to the fund’s terms and conditions to allow the unitholders’ exit in exchange for an in-kind consideration based on the revised offer from Jabal Omar, with the change taking effect on Feb. 21, 2022.

The basic change includes changing the fund's risk degree from medium to high, adding the most important terms of the binding agreement that will be concluded between Jabal Omar and the fund, and adding the timeframe for executing the deal.

Jabal Omar received, on Jan. 9, a notification from Alinma Makkah Real Estate Fund informing that the unitholders approved the implementation of the fundamental changes to the fund terms and conditions to allow the unitholders the option to exit the fund in exchange for in-kind consideration based on the terms and conditions of the offer; and delegating the fund manager to complete any required regulatory changes to enable the manager to accept the offer on behalf of the fund.

The fund manager will complete the required procedures for obtaining the approval from the Capital Market Authority (CMA) on the fundamental changes to the fund terms and conditions, and thereafter sign the binding agreement in respect of the transaction, which is expected to be on or prior to Feb. 10, 2022.

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