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[August 24, 2014]
GGICO to sell Um Al Nahd plot for AED 60 mln [Mubasher (Saudi Arabia)]
(Mubasher (Saudi Arabia) Via Acquire Media NewsEdge) In its statement to the Dubai Financial Market (DFM), the Board of Directors of Gulf General Investment Co. (GGICO) has approved the sale of a plot of land in Um Al Nahed region to Grand Hills LLC for AED 60 million, after reviewing three bids from three different potential buyers and selecting the best offer.
The transaction took place on March 21, 2013. Accordingly, GGICO's profit share as a result of this sale was AED three million and was reflected in GGICO's books in Q4-13.
It is worth noting, the statement said, that Grand Hills is owned by Al Soor General Trading LLC and is therefore not a subsidiary or related party of GGICO's.
Moreover, GGICO had entered into a deal to sell its shares representing 50% of capital in Gulf Engineering Services (GES) to Sigma Engineering for a total of AED 7.5 million, the Company's statement to DFM noted, adding that GGICO's management has word hard for a six-month period to find a serious buyer at a preferred price but failed. Therefore, GGICO began negotiating with Sigma Engineering, as it was engaged in the same business activity, to merge with or acquire a stake in GES.
Sigma showed an interest and bought 50% of GES for a total of AED 7.5 million.
GGICO's profit from this transaction amounted to AED five million, the statement added, highlighting that the transaction was recorded in the Company's books of Q4-13.
It is worth noting that Sigma Engineering is a related party, in which IGPL owns 71% and owns 50% of GGICO.; All Rights Reserved - Mubasher Info (c) 2014 Provided by SyndiGate Media Inc. (Syndigate.info).
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