KSA's Emaar EC enters into a subscription agreement with PIF
The agreement will be subject to Emaar EC's completion of regulatory steps in accordance with the CMA's rules
Saudi Arabia's Emaar The Economic City (Emaar EC), which is the master developer of the King Abdullah Economic City (KAEC) has entered into a share subscription agreement between several limited companies including Dayim Modern Real Estate Management Company, ME Royal Capital LLC, ME Partners Capital LLC, ME Strategic Investments LLC, ME Holdings LLC, Emaar Middle East LLC and the region's Public Investment Fund (PIF).
Emaar EC has announced that discussions are ongoing between Saudi Arabia's Ministry of Finance (MoF) and PIF in regard to novation of part of the loan, Saudi Stock Exchange, Tadawul stated in a report.
Pursuant to the subscription agreement, PIF will enter Emaar EC as an investor in through issuance of 283,333,334 new shares in the company, at the value of $2.67 (SAR 10) per share.
The agreement will be subject to Emaar EC's completion of all necessary regulatory steps in accordance with the Companies Law and the Capital Market Authority’s (CMA) regulations, including obtaining the approval of the company’s general assembly.
The subscription agreement, subject to completion of certain conditions, will result in the capital increase and settlement of the entire debt owed by Emaar EC to PIF, pursuant to the novation.