Riyadh – Mubasher: Seera Group Holding and Alula Development Company agreed to end their contract that was inked in February 2022 for the purpose of establishing a joint venture (JV).
In a bourse filing, Seera highlighted that the project required higher costs than the agreed amount of SAR 170 million.
The two companies pumped SAR 14 million in the JV, of which SAR 4.68 million are incurred expenses to date.
Meanwhile, each partner will receive the remaining cash amount according to their respective shareholding percentages.
Under the previous agreement, the listed group was supposed to hold 51% equity ownership in the project, while Alula was meant to own a 49% stake.
During the first quarter (Q1) of 2023, Seera turned profitable at SAR 57 million, against net losses after Zakat and tax valued at SAR 63 million in Q1-22.
Revenues hiked by 61.05% to SAR 794 million during Q1-23 from SAR 493 million in the year-ago period.
