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MBC GROUP

20 October, 2024 15:52

MBC Group announces the sale of part of its stake in Arabian Contracting Services Company for an amount of 416,500,000 Saudi Riyal.

Element ListExplanation
Transaction Details MBC Group (the "Company") announces the sale of part of its stake in Arabian Contracting Services Company ("AlArabia"), comprising 2,450,000 shares, which represent 4.9% of AlArabia's share capital to a number of investors (the "Transaction"). The Transaction was executed as a negotiated deal in accordance with the applicable procedures.
Transaction Amount The Transaction completed with a total value of SAR 416,500,000.
Transaction Conditions Not Applicable.
Parties of the Transaction The Company as the seller and a number of investors as buyers through negotiated deals in accordance with the applicable procedures.
Date of Entering Into The Transaction 2024-10-20 Corresponding to 1446-04-17
Description of Activity of The Asset Subject of The Transaction AlArabia is a leading company in outdoor advertising in the Kingdom of Saudi Arabia. AlArabia's business includes setting up, operating and maintaining outdoor advertising billboards, specifically roadside advertising and indoor advertising.
Asset Book Value The book value of the Company's entire share in AlArabia is around SAR 1,000,000,000, and the book value of the shares sold in the Transaction is around SAR 246,000,000.
Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction AlArabia's financial statements are available on the Saudi Exchange (Tadawul) website.
Transaction reasons The purpose of the Transaction is to strengthen the Company's financial position and realize a portion of the Company's investment profits.
Expected Impact of the Transaction on the Company and Its Operations The Transaction is expected to have a positive impact on the Company's consolidated financial statements in the fiscal year ending 31 December 2024G.
Details of Using The Proceeds of the Asset Sale The Transaction proceeds will be used to support the Company's activities.
Related Parties Not applicable.
Additional Information After the Transaction, the Company will retain a 15.1% stake in AlArabia as an investment in an associated company. The remaining shares held by the Company in AlArabia will be subject to a 180-day contractual lock-up undertaking starting from the Transaction execution date.

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