Taiba discloses capital hike details for acquiring Al Aqeeq, ARAC

Taiba Holding Co. has disclosed the details of its prospective capital hike from SAR 1.5 billion to SAR 1.6 billion to finance the acquisition of the minority interest in Al Aqeeq Real Estate Development Co. and Arab Resort Areas Co. (ARAC) to its shareholders.

All information regarding the capital hike and associated risk factors are made available to shareholders, the company said in a bourse statement.

The acquisition is expected to have a positive impact on the company’s net profit, the statement added.

Following the completion of the acquisition deal, Taiba’s stake in Al Aqeeq will increase to 100 percent from 91.88 percent while its stake in ARAC will grow to 95.53 percent from 86.87 percent.

Earlier this month, Taiba receivd the approval of the Capital Market Authority (CMA), the Saudi market regulator, on increasing its capital from SAR 1.5 billion to SAR 1.6 billion, through issuing 10.76 million shares, according to data compiled by Argaam.