Addendum Announcement from Arabian Contracting Services Co. Regarding exercising MBC Group Holdings Ltd. (one of the substantial shareholders) its purchase option to increase its ownership percentage by 15% of al arabia shares bringing their total ownership percentage in the company to become 20%.

Element ListExplanation
Introduction Further to the announcement by the Arabian Contracting Services Co. regarding the MBC Group Holding Ltd. (one of the substantial shareholders) exercising the right of purchase option and increasing its ownership by 15% of the Al arabia shares, bringing the total ownership percentage in the company to become 20%.

The company would like to announce the details of the agreement between the two parties, MBC Group Holding Ltd. And Engineer Holding Group (The rights of purchase option), which are as follows:

1- It was agreed on the right of purchase option, and the determination of the share purchase price (according to market conditions at that time) since the date of 04/24/2020, which is also the day of the agreement between Arabian Contracting Services Co. and MBC Group Holding Ltd. to sell and buy shares in order to sell 2,500,000 shares of the company’s shares Which represents 5% of the company's capital, as referred to in the prospectus.

2-Providing the right of purchase option to MBC Group Holding Ltd. was for the strategic purpose of entering into alliances with the aim of expanding regionally through cooperation with the MBC Group Holding Ltd. due to its distinguished position in the Middle East Markets, which serves the company’s goals of geographical expansion regionally to advance the company’s position maintaining its leadership position and completing its excellence in digital transformation to provide outdoor advertising solutions regionally. This agreement is one of the fruits of this strategy, which is increasing the ownership percentage of MBC Group Holding Ltd. in al arabia to become 20%.

3- A share purchase agreement was entered into on 19/02/1444 AH (corresponding to September 15, 2022) between Engineer Holding Group and MBC Holding Group Ltd., according to Engineer Holding Group will sell the purchase option shares to MBC Group Holding Ltd. via A private purchase and sale transaction for a total amount of four hundred and ninety-seven million two hundred and fifty thousand SAR 497,250,000, equivalent to sixty-six Saudi riyals and thirty halalas SAR 66.30 per share.

It is worth mentioning that the beginning of discussions to provide the option purchase was on 24 April 2020 (During the Covid-19 Pandemic) and that the agreed share price was based on market value in that period. Undoubtedly, the share price in the agreement does not reflect the current market value.

Date of Posting the Previous Announcement of Development on Tadawul's Website 2022-09-18 Corresponding to 1444-02-22
Hyperlink to the Previous Announcement Click Here
Change on the Development Additional details of the agreement concluded between Engineer Group Holding and MBC Group Holding Ltd. were mentioned in this announcement.
Financial Impact on the change N/A
Additional Information N/A

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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