Riyadh – Mubasher: The board of directors of Tourism Enterprise Company (Shams) decided to withdraw from the acquisition agreement of Hemaia Group.

The deal was cancelled due to financial liabilities on Hemaia Group, according to Shams’ statement to the Saudi Stock Exchange (Tadawul) on Sunday.

Such financial obligations were not recorded in the company’s audited statements and the due diligence report.

Shams noted that no cash payments were transferred pertaining to the acquisition deal, confirming that the cancellation has no financial impact on its financial results of 2019.

In the same vein, Shams has cancelled the acquisition of Saud Al Khalifa Madaj & Co. for transferring funds, and Saud Al Khalifa Madaj & Co. for security services.

In June, Shams announced that it has finalised the acquisition of a 53% stake in Hemaia Group through raising Hemaia’s capital by SAR 10 billion.