Kingdom Holding’s subsidiary inks binding MoU to buy Fawaz Alhokair’s stake in Trade Center

Kingdom Investment and Development Co., a subsidiary of Kingdom Holding Co. (KHC), signed a binding memorandum of understanding (MoU) with Fawaz Abdulaziz Alhokair Co. to buy its full stake in Trade Center Co. Ltd for cash consideration.

The MoU will be valid for two weeks, starting from Wednesday, Oct. 23, KHC said in a bourse filing.

Under the deal, both parties agreed that Kingdom Investment will pay a cash consideration for the stake after deducting all lease values of the existing shops, allocating additional leasing areas to the affiliates of Fawaz Alhokair and settling all legal claims until the agreement date.

The lease values owed by commercial shops will be settled by Fawaz Alhokair and its affiliates. New contracts will be also drafted to settle the outstanding lease values and pay leases in advance for the next three years.

The deal comes as part of KHC’s expansion strategy, which aims to boost the value of its investments in the Saudi real estate sector, KHC said, adding that the deal is pending approval of the concerned authorities.