CMA approves Al Ahsa’s capital hike to acquire Al Salam Medical Services

The Saudi Capital Market Authority (CMA) approved Al Ahsa Development Co.’s request to increase its capital to SAR 737.32 million from SAR 490 million, the company said in a bourse statement.

Accordingly, its total number of shares will be increased to 73.73 million from SAR 49 million.

The capital hike will take place through issuing 24.73 million ordinary shares at SAR 10 par value per share for the total of SAR 250 million.

The step is intended to finance the full acquisition of Al Salam Medical Services Co. for a total value of SAR 250 million under a share swap deal.

Al Ahsa’s share was valued at SAR 10.10 according to the acquisition agreement between the two companies.

Therefore, The Saudi-listed firm will issue 1 share for every 0.81 shares of Al Salam Medical Services.