Taiba Holding announces the results of its Eighty-eighth Board Meeting

The Board of Directors of Taibah Holding held its eighty-eighth meeting at the headquarters of Tiba in Madinah on Tuesday, 15/05/1432 H corresponding to 19/04/2011 where the Board was briefed at the beginning of its meeting on developments in the areas of activities of real estate and non-real estate, Al Aqeeq Real Estate Development – Taiba’s real estate arm, which owns 89.9% of its share capital – on what has been achieved with regard to the financing of agate projects and investments through increasing the capital of agate by issuing new shares and offering them for public subscription and obtaining loans compatible with the provisions of Islamic Bank and the issuance of Islamic Sukuk. Under the previously announced agreement with Al Ahli Financial Company to provide related financial advisory services, the work team for this project was completed through the appointment of Baker & McKenzie as Legal Counsel and PricewaterhouseCoopers as Accounting Consultant In the light of the results of these studies, the financial advisor, NCB Capital, held an introductory meeting with the Capital Market Authority in 2010 in the presence of officials from the Agate, Baker and McKenzie offices, in order to consult on the project of increasing (The former East Tower) and the Al Majidi residential and commercial center (formerly the West Tower) by selling from Taiba Holding to Al-Aqeeq and recording them at market value. In the first quarter of 2007, while these two assets continued to be recorded at their historical value in the consolidated financial statements of Taibah Holding. Consequently, there is a difference of over The value of these two assets between the books of accounting for each of the agate and good, which requires studying how to address this difference and its impact on the financial statements of the Agate and Taiba Holding; accordingly, in coordination with the financial advisor Ahli Finance appointed PricewaterhouseCoopers to conduct an assessment The results of this study are the absence of any decline in the values ​​of the buildings of the two centers. On the contrary, the report of the test showed that the fair value of the two buildings on 31/12/2010 (without the value of land) is Higher than the value Bookings according to the indicated drop test standard. It also appointed three independent and specialized real estate valuations, namely DTZ, Colliers International and Saudi Asset Valuation and Valuation Company (TUHMIN), to evaluate the property properties of Agaq. The average prices of these companies amounted to Taiba and Majidi as a market value (Land and buildings) as at 31/12/2010 were in the books of agate 1799 million riyals, which comes within the study of agate solutions and various proposals submitted by the financial advisor company God And the other consultants to choose the most suitable one to be achieved with the interest of Agate and Taiba Holding in the context of the compatibility of the status of the evaluation of the two buildings referred to in the books of agate and the emergence of the values ​​of these two buildings in historical value in the consolidated books of the company with accounting standards, to determine the most appropriate option for coordination with the regulatory bodies. On the other hand, the financial advisor, Ahli Capital, is currently working on finalizing the loan request note which is expected to be submitted to a number of banks in the next few weeks to obtain long-term loans that are compliant with the Islamic Shari’ah to cover the financing of ongoing agate projects. , And will be announced in this regard in a timely manner. Mr. Abdullah bin Mohammed Al-Zaid, Vice-Chairman and Managing Director of Taibeh, said that the Board had been briefed on the progress of the implementation of real estate projects in the subsidiaries of Taibeh Holding. The Board then considered the items on its agenda and took the necessary decisions, A high-level committee to follow up on the expropriation of some of the properties owned by Taybeh in the area around the Prophet’s Mosque to see what was done about the payment of compensation due to them after years of the decision of displacement and appreciation of the establishment of such properties without the payment of compensation owed to its owners.