Abdul Mohsen Al Hokair Group for Tourism and Development announcedAl Hokair GroupToday, Sunday, the company announced that the company entered into negotiations with Abdul Mohsen Al Hokair Holding Group (a related party) to acquire a number of hotel assets currently leased by the company.
Al Hokair Group said in a statement on the Saudi Tadawul that the acquisition is in exchange for issuing new shares to increase the company’s capital and support its operational activities, and any new developments will be announced at the time.
It is noteworthy that Abdul Mohsen Al Hokair Group for Tourism and Development submitted a file for approval of the capital reduction to the Saudi Capital Market Authority.
The Board of Directors of Abdul Mohsen Al Hokair Group Company had recommended reducing the company’s capital on August 31, 2022, from 650 million riyals to 315 million riyals, at a rate of 51.54%.
Al Hokair Tourism Group announced in a previous statement reducing its losses by 50% in the second quarter of 2022, to reach about 35 million riyals.
Head of Asset Management at Rasanah Finance, Thamer Al-Saeed
For his part, the head of Asset Management in Rasana Financial, Thamer Al-Saeed, said in an interview with “Al-Arabiya”, today, Sunday, that the current owners in “Al Hokair Group” have accepted the deal because the stock was positively affected and was among the highest-grossing shares in the session, which explains the acceptance of the deal. Shareholders intend the company to acquire these assets.
Thamer Al-Saeed added that the tendency to increase the capital by acquiring assets in return for issuing shares is a process that will reduce part of the company’s burdens, such as the rental value and add to the value of the assets owned by it.
Al-Saeed continued: “The question remains, how do you evaluate these assets, who is the resident, and how can a conflict of interest be avoided.”