Jabal Omar receives shareholder approval to settle $1.42bn debt for new shares – The National

Jabal Omar receives shareholder approval to settle $1.42bn debt for new shares – The National

Jabal Omar Development Company, one of Saudi Arabia's biggest listed developers, has received shareholder approval to issue new shares in exchange for settling 5.3 billion Saudi riyals ($1.42bn) worth of debt as part of its capital restructuring plans.

The company, which is behind the mega development in the holy city of Makkah, said shareholders approved the debt-to-equity transaction during its extraordinary general meeting on August 25.

Under the deal, Jabel Omar will issue 225 million ordinary shares to unit holders of Alinma Makkah Real Estate Fund in exchange for extinguishing all debts owed by the company and settling “all rights and obligations related to the fund”, the developer said on Sunday in a statement to the Tadawul stock exchange, where it shares are traded.