‎Jabal Omar issues shareholders’ circular on capital hike via debt conversion

‎Jabal Omar issues shareholders’ circular on capital hike via debt conversion

Jabal Omar Development Co. announced today, Aug. 7, the availability of its shareholders’ circular regarding the capital increase through debt conversion.

The circular covers details, terms, conditions and other related matters of the transaction, including related parties’ details, procedures required for capital hike and risks related to the deal, according to a bourse filing by Jabal Omar.

The board of directors called upon shareholders to carefully read and consider all information contained in the circular prior to making their decision when asked to vote on the move.

If in doubt, the board recommends that shareholders consult an independent Capital Markets Authority (CMA)-licensed financial advisor to examine the transaction with regard to the shareholder's individual objectives, financial situation and needs, the statement added.

Any further material developments regarding the transaction will be announced in due course.

According to Argaam’s data, Jabal Omar’s shareholders are set to vote on increasing capital from SAR 9.29 billion to SAR 11.55 billion through converting all debts owed by the company to Alinma Makkah Real Estate Fund into new ordinary shares, during an extraordinary general assembly meeting (EGM) scheduled to be held on Aug. 25.

Capital will be increased by converting SAR 5.30 billion of debt owed to Alinma Makkah Real Estate