Mohammad Al-Mojil Group (MMG) jumped up 3.2% in a day to $3.43 on Saudi Arabia’s Tadawul stock exchange after the Saudi Arabian contractor announced the signing of a $120m financing agreement with seven local banks.
The close is the highest in a week for the construction firm, which has been struggling recently, with first quarter profits falling 31% to $6m this year compared with the same period in 2011.
MMG CEO Ibrahim Zadeh, in his position since only November, and hired to turn the company’s fortunes around after a $275m loss in Q4 2011, resigned after the first quarter results.
The company continues rudderless in this respect, with the governing council controlling operations until a new CEO is found, which will happened by the end of August at the latest.
However, MMG is also attempting to strike an optimistic tone, and in April established a new consultancy arm in Dubai.
The new loan will ‘support the solvency of the company and its operations,’ according to a statement posted on the Tadawul.
The loan will run until the end of 2013, facilitated by seven banks: Arab National Bank, Bank Al Jazira, Banque Saudi Fransi, National Commercial Bank, Riyad Bank, SABB and Samba Financial Group.
The share gain trims cumulative year-to-date share loss to 48.8%.
