Arabian Centres Co. — Capital/Financing Update 2020

Nov 10, 2020

Arabian Centres Company announces SAR 97.5 sale of its subsidiary’s stake in Panorama Mall holding company

4321 · 10/11/2020 08:01:44 · Announcement #61044 · View on Saudi Exchange

Arabian Centres Company announces SAR 97.5 sale of its subsidiary’s stake in Panorama Mall holding company

Element List	Explanation
Introduction	Arabian Centres announces that on Monday, 09 November 2020, its 95% owned subsidiary Riyadh Centres Company Limited (the “Seller” or “RCCL”) signed a sale contract with Borouj International Company Limited (the “Buyer” or “BICL”), transferring the full ownership of RCCL’s 25% equity stake in Aswaq Almustaqbal Company for Trading (the “Target Company”), the company which enjoys ownership of Panorama Mall in Riyadh, for a sum of SAR 97.5 million.
Transaction Details	Sale of RCCL’s full 25% equity stake of 2,500 shares in Aswaq Almustaqbal Company for Trading, which enjoys ownership of Panorama Mall in Riyadh, to BICL, which holds the remainder of shares in the Target Company, for a value of SAR 97.5 million.
Transaction Value	SAR 97.5 million
Transaction Terms	1) The Seller agrees to sell his entire abovementioned stake with all its associated rights and obligations.

2) The abovementioned value of the transaction is set to be net of any fees or taxes, if applicable, and represents full compensation and final settlement between the Buyer and the Seller for the sold shares.

3) The transaction value includes profits for the first half of 2020G, and the Seller forfeits the right to claim any other amounts from the Buyer as profits for 2020G.

4) The Buyer undertakes to pay by certified check the full value of the sold shares. Parties of the Transaction Seller: Riyadh Centres Company Limited.

Buyer: Borouj International Company Limited (which owns the remainder of shares in the Target Company). Transaction Funding Method N/A Transaction Execution Date 2020-11-09 Corresponding to 1442-03-23 Description of the Business of the Asset forming the Subject Matter of the Transaction Commercial Shopping Centre in the city of Riyadh. Asset Book Value Net book value of this investment within ACC’s financial statements amounted to SAR 57.2 Million as of 30 September 2020. While the initial investment amounted to SAR 42.7 Million. Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction None. Transaction reasons This transaction conforms to the Company’s strategy of exiting noncore investments and also those classified as available for sale. Expected Impact of the Transaction on the Company and Its Operations The financial impact of the transaction is expected to appear in the Company’s financial statements for the third quarter of its fiscal year 2021 (Q3-FY2021). Details of Using The Proceeds of the Asset Sale Arabian Centres will use the funds from this transaction to fund and support its internal resources. Related Parties None.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.