By Brinda Darasha, ZAWYA
Saudi Telecom Company (STC) has sold a piece of land located in Khobar for 1.378 million riyals (US$367 million) as part of its strategy to maximise return on assets.
As the asset book value of the land is SAR82 million, the sale will generate a profit of SAR1.29 billion (US$245 million), which will be reflected in the financial statement once the transaction is completed within 120 days, the telco said in a regulatory disclosure on Riyadh’s Tadawul exchange on Wednesday.
The land, measuring over 4 million square meters, was sold to Hasan Abdulrahman Almusleh Alqahtani at a rate of SAR336 per square meter through a public auction, it added. The property is located in Al Murjan Area South of Al Aziziah district on King Fahad Road.
Payment terms include a non-refundable deposit for SAR10 million and a promissory note for SAR1.368 million.
The proceeds of the sale will be utilized by STC to expand investments and explore growth opportunities in the kingdom and the region, it added
- Reporting by Brinda Darasha; editing by Seban Scaria. brinda.darasha@lseg.com
