The chief investment officer of Mada’a Investment Company, Thamer Al-Saeed, said that the management of Alinma Makkah Real Estate Fund and Jabal Omar Company should focus on a win-win deal for both parties.
He added in an interview with Al-Arabiya channel, as long as the takeover offer submitted by Jabal Omar Company increased by 16%, this means that the owners and fund managers are not satisfied with the swap price in the first offer.
He made it clear that in order not to complicate the issue further, both parties should focus on a deal that pays dividends for both.
“The returns in the previous period were attractive to investors, and the general form that the Jabal Omar Company wanted was to lease the asset and retrieve it later, and the conditions were good for Jabal Omar, also in terms of operations, but Corona came, and the situation changed upside down and the campus was closed for a while due to The pandemic, and the Jabal Omar Company bore great burdens.
Al-Saeed pointed out that if the deal is completed, the unit holders of Alinma Makkah Real Estate Fund can switch to cash whenever they want, and this is a great advantage.
He pointed out that in the end, the operation of the Jabal Omar Company will return to normal in any case.
Regarding the value of the deal, Al-Saeed said, “The value of the deal at the current offer stands at 6 billion riyals, and this may be two billion less than the year of incorporation, but obtaining liquid assets must have a discount.”
Jabal Omar Development Company had raised its non-binding offer to acquire the portfolio of the Alinma Makkah Real Estate Fund.
The company stated that it had raised its offer for acquisition to 250 million shares to be issued by the company, compared to 193 million shares it had offered to the fund’s unit owners.
The company added that the Board of Directors of the Alinma Fund agreed to make basic changes in the fund’s terms and conditions memorandum to allow the option of in-kind exit for unit holders.
The deal comes to reach a comprehensive settlement in relation to the fund’s assets and associated rights and obligations.