"Alinma REIT Hotels" intends to purchase 10.2 million treasury units

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Alinma Capital, in its capacity as manager of the Alinma REIT Hotel Fund, announced the approval of the Fund’s Board of Directors to purchase up to 10.2 million monetary units, equivalent to 10% of the total units issued, with the aim of keeping them as treasury units and using them in exchange operations in exchange for acquiring new assets or selling them in the future.

The company stated in a statement on Tadawul Saudi Arabia on Sunday that the Fund’s Board of Directors believes that the current price of the units is less than their fair value, noting that implementing the purchase process requires the approval of the unit owners through a special decision, with the fund manager authorized to complete the purchase operations within a period not exceeding 12 months from the date of issuance of the decision.

It stated that financing the purchases will be through the Fund’s credit facilities and surplus cash flows, without affecting the distributions provided to unit owners.

Alinma Financial confirmed that the purchases will take place through the market, not through private deals, and that the treasury units that the fund may purchase will not have voting rights in unitholders’ meetings.

She added that the implementation of purchase operations will depend on market developments and the unit price, and is subject to the discretion of the fund manager, and is not mandatory.