Logo of United Electronics Co. (eXtra)
United Electronics Co. (eXtra) shareholders will vote on floating 7.5 million shares of United International Holding Co. (UIHC), or 30% of capital, in an initial public offering (IPO) on the main market (TASI).
The voting will be during the extraordinary general meeting to be held on March 19, according to a statement to Tadawul.
The objective of the transaction is to achieve eXtra’s business strategy, namely, to continue exploiting promising opportunities that could allow it to enhance its operations and maximize the value of its various businesses.
In addition, it will enable UIHC to pursue its strategic goals, compete in the sector in which it operates and increase brand awareness as a result of being a listed company.
The transaction will offer UIHC's management to handle an independent and specialized team, with an increased focus on the consumer financing sector as the company’s primary sector.
eXtra’s board of directors and executive management conducted a comprehensive review of the rationale and feasibility of the significant transaction, the company said, concluding that the move serves the short and long-term interests of its shareholders, employees, customers and other stakeholders.
The significant transaction will result in the listing of UIHC’s shares on Tadawul, allowing both UIHC and eXtra to pursue their strategic objectives.
In particular, the board of directors believed that the significant transaction will benefit eXtra’s shareholders in terms of unlocking value for the parent company, achieving greater brand awareness, offering access to the public market for liquidity, enhancing monetization options for the remaining stake, and using the IPO proceeds to support investment for growth and dividend distributions.
UIHC is 99% owned by eXtra and 1% by eXtra Bahrain. It manages sister companies and executes real estate, securities, and other investment partnerships, according to data available with Argaam.
The shareholder circular is attached below:
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}