Riyadh – Mubasher: The Capital Market Authority (CMA) recently approved Taiba Investments Company’s request to increase its capital from SAR 1.60 billion to SAR 2.60 billion to acquire Dur Hospitality Company through a securities exchange offer.
The SAR 1 billion worth of capital hike will be carried out by issuing 100 million ordinary shares, according to a bourse statement.
The approval, which the CMA granted on 6 November 2023, is subject to a green light by Taiba Investments' shareholders at an extraordinary general meeting (EGM) and the acceptance of the offer by Dur Hospitality’s EGM.
If the capital raise and the offer are approved, the new shares will be issued in favour of Dur Hospitality’s shareholders while its shares will be delisted from the Saudi Exchange (Tadawul) following the acquisition.
It is worth noting that during the period from January to September 2023, Taiba Investments achieved net profits of SAR 143.51 million and revenues worth SAR 360.51 million.
Meanwhile, Dur Hospitality reported net profits worth SAR 28.42 million in the first nine months (9M) of 2023.
