The market value of Taiba Investment Company is 5.5 billion riyals (about 1.47 billion dollars), while the market value of Dur Hospitality is 3.5 billion riyals (0.93 billion dollars).
The two companies confirmed in their statements to the Saudi Stock Exchange (Tadawul) that these discussions do not necessarily mean that the merger process will take place between the two parties.
In the event that the merger is agreed upon, it will be subject to the conditions and approvals of the relevant regulatory authorities in the Kingdom of Saudi Arabia and the approval of the extraordinary general assembly of both companies.
Dur Hospitality’s portfolio includes 20 hotels and 9 residential complexes, in addition to 16 facilities under development, according to its website.
As for the “Tiba Investment” portfolio, according to its website as well, it includes 7 hotels and two residential and commercial complexes. It is also an investor, through subsidiaries or associates, in real estate projects such as the Millennium City Hotel, Al Seera City Company, Knowledge Economic City Company and Kinan Company. Taiba also has stakes in non-real estate companies, including 55 percent of Tadec, about 35 percent of Tamour, 30 percent of Nozol, and 2 percent of Safco.
It should be noted that both “Dur” and “Tiba” include major joint investors. Asilah Investment Company owns 27 percent of Dor and 16.7 percent of Taiba, while Mohammed Ibrahim Al-Issa owns 12 percent of the first and 7.4 percent of the second.
The third main shareholder in Dour is the Saudi Public Investment Fund, with a 16.6% stake. While the additional main investor in “Taiba” is Mohamed Saleh Serafi, with 14.5 percent.
During the fiscal quarter ending on March 31, 2021, Taiba Investments achieved revenues of 34 million riyals ($9.7 million), compared to 85 billion riyals ($22.6 billion) for the same quarter of the previous year, a decrease of about 60 percent. While the net losses amounted to about two billion riyals, compared to a net profit of 50 million riyals for the same period.
The company referred the reason for achieving a net loss for the current quarter, compared to a net profit for the same quarter of the previous year, to the decrease in revenues due to the Corona pandemic, in addition to the fact that the same quarter of the previous year included profits from the sale of investment in one of its subsidiaries, as well as making a profit from receiving compensation for the land that It was expropriated in Medina in favor of the expansion project of the Prophet’s Mosque.