In Saudi Arabia, Zakhr Investment and Real Estate Development has a Mecca development in the works that will include a hotel alongside residential and commercial facilities. Some local companies are looking to get in on the business: Under the new plan announced in a bourse filing, Saudi Arabia's Al Tayyar Travel Group will acquire 15 percent of Zakhr from Mohammed I. Alsubeaie & Sons Investment Co. and 15 percent from Abdullah Almishal & Sons Co for a total value of 803.8 million riyals, or $214.4 million.
In return, Reuters is reporting that the two Zakhr shareholders will receive 9.65 million shares in Al Tayyar, which will be created through a capital increase, giving the pair a combined holding of 4.6 percent in the travel firm.
The new deal amends an initial agreement signed in August that would have had Al Tayyar buy 12.5 percent each from the two shareholders for a stake worth 669.9 million riyals, or $178 million, in exchange for 6.51 million new Al Tayyar shares.
After news of the deal broke earlier this week, Al Tayyar's shares closed at 69 riyals on Monday, a significant drop from the 95 riyals at which they closed in the session before the August announcement was made. The decline, however, matches the overall decrease in the Saudi stock index, Reuters notes.