Tadawul-listed Riyadh Development inked an agreement to buy two real estate assets from Remat Al Riyadh Development for SAR 1.4 bn in a noncash transaction by issuing new shares to the sellers, it said in a disclosure to Tadawul. The move, which is pending regulatory and shareholder approval, would see Riyadh Development acquire a 787.5k sqm land plot in Dammam, along with a 214 sqm land plot in Riyadh.

To finance the purchase, the company will hike its capital by 31.6% to SAR 2.3 bn by way of issuing and selling new shares. The sellers will get a 24% stake in Riyadh Development, with the holding of the current shareholders settling at 76%.

ADVISORS- Riyadh Development has tapped SNB capital as its financial advisor with AS&H Clifford Chance providing legal counsel.

IN OTHER M&A NEWS-

Taqat extends MoU to acquire Bayan Al Naql: Scrap metal recycling firm Taqat MineralTrading extended a non-binding MoU it had signed in May to fully acquire Company Statement Transport Trading (Bayan Al Naql), which was set to expire yesterday, according to a disclosure to Tadawul. The extension makes the agreement valid until the end of the year. No further details about the potential acquisition were disclosed.

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