Mohammed Ahmed Hassan Fitaihi signed a non-binding Memorandum of Understanding to acquire remaining 80% stake in Luxury Goods Trading Co. Ltd.(LGTC) from Fitaihi Holding Group for SAR 14.36 million.
June 09, 2020
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Mohammed Ahmed Hassan Fitaihi signed a non-binding Memorandum of Understanding to acquire remaining 80% stake in Luxury Goods Trading Co. Ltd.(LGTC) from Fitaihi Holding Group (SASE:4180) for SAR 14.36 million on June 10, 2020. Mohammed Ahmed Hassan Fitaihi signed a contract to acquire remaining 80% stake in Luxury Goods Trading Co. Ltd.(LGTC) from Fitaihi Holding Group on October 25, 2020. Under the terms of the transaction, Consideration of SAR 10.75 million shall be paid in cash initially and further obtaining gold and jewelry merchandise (selected by Fitaihi Holding Group) from Luxury Goods Trading at its fair value by Fitaihi Holding Group, from (Luxury Goods Trading Company Limited) at its fair value, in the amount of SAR 1.27 million which represents 8.8% of the total value of the transaction. Scheduling the payment of the remainder of the transaction value, an amount of SAR 2.34 million, which represents 16.3% of the total value of the transaction, on six installments until December 31, 2022.
Luxury Goods Trading Co. Ltd.(LGTC) reported a net loss of SAR 1.58 million in 2019. On June 29, 2020, Fitaihi Holding Group announces its Board of director’s approval on the resignation of the member of the Mohammed Ahmed Hassan Fitaihi, from his membership at both Board and Investment Committee to avoid any future conflict of interest. The transaction is subject to shareholders approval of Fitaihi Holding Group. As on June 10, 2020, Board of Directors of Fitaihi Holding Group approved the transaction. The Board of Directors of Fitaihi Holding Group invites its shareholder to attend ordinary general meeting held on July 15, 2020. On 16 July, 2020, the shareholders of Fitaihi Holding Group approved the transaction. KPMG Al Fozan & Partners Certified Public Accountants acted as accountant to Fitaihi Holding Group.
Fitaihi Holding Group SJSC, formerly Ahmed H.Fitaihi Company, is a Saudi Arabia-based company that is primarily engaged in the wholesale and retail sector. The Company manufactures and trades in gold and other jewelry items, precious metals, gemstones, textile, leather items, accessories, cosmetics and beauty products, household utensils, tableware, gifts, antiques, textiles and clothing, and medical equipments and appliances, among others. In addition, the Company also establishes, owns and manages hospitals, health centers and medical rehabilitation centers, as well as establishes and organizes permanent and temporary exhibitions. The Company operates through its subsidiaries include wholly owned Sadook International Investment Holding and Medmac Gulf Real Estate Investment Company, and 80%-owned Luxury Goods Trading Company.
Mohammed Ahmed Hassan Fitaihi signed a non-binding Memorandum of Understanding to acquire remaining 80% stake in Luxury Goods Trading Co. Ltd.(LGTC) from Fitaihi Holding Group for SAR 14.36 million.