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Image used for illustrative purpose. A view shows buildings and the Kingdom Centre Tower in Riyadh, Saudi Arabia, January 1, 2017.Faisal Al Nasser
Kuwait-listed real estate company Mabanee said on Tuesday it has decided to reduce its shareholding in the Saudi real estate joint venture Shomoul.
In a Kuwait bourse statement, Mabanee said it has decided to cut the stake from 80 percent to 73 percent following negotiations with its partners.
“Mabanee announces that it has negotiated with its partners in Shomoul Holding to reconsider the shareholding structure based on the actual financial contributions made by the partners to the company’s project,” said Mabanee.
As a result of these negotiations, the percentage of Mabanee's share capital will be 73 percent instead of 80 percent, and the company will continue to finalise the necessary legal and regulatory procedures, it added.
Shomoul is a joint venture created in 2014 by Mabanee and the Saudi Al-Fozan Holding Company, which has presence in the Kingdom and other Gulf states.
Mabanee has a capital of 139.5 million Kuwaiti dinars ($460 million) and is developing several projects in Kuwait, Saudi Arabia and Bahrain with strong partners in each country it operates, according to its website.
(Writing by Nadim Kawach; Editing by Anoop Menon)
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