Abdullah Al Othaim Markets Co. — Capital/Financing Update 2015

Dec 16, 2015

ABDULLAH Al-OTHAIM MARKETS COMPANY ANNOUNCES ITS EXPANSION PLAN IN THE ARAB REPUBLIC OF EGYPT.

4001 · 16/12/2015 08:14:01 · Announcement #40414 · View on Saudi Exchange

ABDULLAH Al-OTHAIM MARKETS COMPANY ANNOUNCES ITS EXPANSION PLAN IN THE ARAB REPUBLIC OF EGYPT.

Whereas Abdullah Al Othaim Markets Company (the Company), has previously established a subsidiary company in the Arab Republic of Egypt in 2011 fully owned by the Company, which did not engaged yet in any commercial activity since its formation, and its activities concentrate on retail and whole sales in foods sector and based on the Company's expansion plan to increase its branches and sales, and whereas the Company found that the current opportunity and the economic conditions of the Egyptian market is favorable and encouraging in light of the continued growth in the population and increasing demand for goods and services, the Board of Directors has approved on 15/12/2015 the initial plan of geographical expansion through opening new stores in the Arab Republic of Egypt, with an investment amount equivalent to SAR 144 million over the next three years to be invested in the above mentioned activity. It is expected that the commercial activities of the Company will start during the first quarter of 2016.

According to the approved business plan, the Company expects to start realizing operational profits from the third quarter 2017.

It is worthy to be noted that the Company will finance its aforementioned expansion plan through self-financing and borrowing

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