Riyadh – Mubasher: Tourism Enterprise Company (Shams) has finalised the acquisition of a 53% stake in Hemaia Group through raising Hemaia’s capital by SAR 10 billion. 

According to the transaction, the capital increase will be paid in cash from Shams’ internal resources, according to a filing to the Saudi Stock Exchange (Tadawul) on Monday.

However, Prince Mishaal bin Saud Al Saud was appointed as Hemaia’s board chairman, and Nader Al-Nasser was hired as a managing director.

This is the first phase of the acquisition deal, Shams said, noting that Hemaia shareholders are working on finishing the required documents to complete the  acquisition of:

• Saud Al Khalifa Madaj & Co. for the transfer of funds
• Saud Al Khalifa Madaj & Co. for private civil security services.

After completing the acquisition, Shams’ shareholding in Hemaia could be reduced and the final stake will be announced after completing the necessary regulatory procedures.

In case of not obtaining the required approvals of the authorities, Shams’ stake in Hemaia will eventually stand at 53%.

The financial impact of the deal will be reflected in the financial results of the second half of 2019.

It is worth noting that Prince Mishaal is a related party in the deal, the statement added.