Riyadh Development Company announced the results of its Extraordinary General Assembly meeting, where shareholders approved a capital increase from SAR 1.77 billion to SAR 2.33 billion, marking a 31.58% increase. The number of ordinary shares will rise from 177.7 million to 233.9 million, enabling the acquisition of two real estate assets from Remat Al-Riyadh Development Company.
Details of the Acquisition
The acquired assets include:
- Raw land spanning 787,477.19 square meters, located north of Dammam Road, Al-Rimal District, Riyadh.
- Plot No. 44/M (Parcel No. 1578/C), covering 214,000 square meters, located south of the Northern Ring Road, Al-Murooj District, Riyadh.
The transaction will be executed through the issuance of 56,153,041 new ordinary shares to Remat Al-Riyadh Development Company.
Key Approvals from the Assembly
- Acquisition and In-Kind Contribution Agreement signed between Riyadh Development Company and Remat Al-Riyadh on September 1, 2024.
- Amendment of Article (7) of the Company’s bylaws regarding share capital.
- Authorization for the Board of Directors to implement all necessary actions related to the transaction.
Other Key Amendments
The General Assembly also approved several amendments to the Company’s Articles of Association, including:
- Aligning with the new Companies Law (Royal Decree No. M/132).
- Modifications to Article (3) (Company’s Purpose), Article (6) (Company’s Term), and Article (11) (Stock Trading).
- Adjustments to Article (17) and Article (20) concerning the Board of Directors’ structure and powers.
- Amendment of Article (44) on profit distribution and deletion of Article (46) regarding preferred shares.
Additionally, the assembly approved the business and contracts between the company and Remat Al-Riyadh Development Company, noting that Prince Dr. Faisal bin Abdulaziz bin Ayyaf, Chairman of Riyadh Development Company’s Board, has an indirect interest as the Chairman of Remat Al-Riyadh Development Company.
