DIDIHC acquires Garden Hotel for RO 10 million

17/10/2012 08:55 AST

Dhofar International Development & Investment Holding Co SAOG (DIDIHC) and its subsidiary Dhofar Investment & Real Estate Services LLC signed an agreement to acquire 100 per cent stake in Garden Hotel LLC for RO 10 million.

According to the share sale and purchase agreement, DIDIHC and its subsidiary will purchase 99.9 per cent and 0.1 per cent shares respectively, of Garden Hotel from its current owners Salim bin Mustahil al Maashani and Al Tamman Trading Establishment.

"The transaction has been reviewed and approved by the Audit Committee of the company in accordance with the terms of the Code of Corporate Governance issued by the Capital Market Authority", says a statement posted on the Muscat Securities Market website.

According to the statement, completion of the acquisition of the shares of Garden Hotel will be pursuant to the agreement subject to registration of the transfer of shares being completed at the Ministry of Commerce and Industry.

"Although one of the sellers of Garden Hotel, LLC is a related party of the Company and the acquisition transaction is, as a consequence, a related party transaction, the transaction is being entered into on an arms-length basis and in the normal course of business", says the statement.

Dhofar International Development & Investment Holding Co. SAOG is an Oman-based company primarily engaged in investment activities in businesses, marketable securities and promotion of new projects.

DIDIC reported a net profit of RO 5.294 million in the first six months ended June 12 against the loss of RO 2.915 million recorded for the same period last year.

At the present market price of 350 baisa, the stock trades at a discount to the latest reported book value of 393 baisa of the group.

With the financial sector continuing to show subdued performance so far this year, the sector index is showing a year to date loss of 2 per cent.

The company has investments in subsidiaries and associates, including Dhofar Investment & Real Estate Services Company LLC, which provides real estate related activities; Bank Dhofar SAOG offers banking services and Dhofar Insurance Company SAOG is engaged in insurance services.

Other subsidiaries - Financial Services Company SAOG offers brokerage services; Salalah Medical Supplies Manufacturing Co LLC is in the field of manufactures and sales surgical disposables, and Omani Vegetable Oils & Derivatives Co LLC manufactures and distributes vegetable oil.

The company has important role in the inception of a host of factories and industrial plants in the Sultanate. It actively contributed in the establishment of a university in Dhofar Governorate in addition to its keen interest to participate in the development of Salalah Free Zone.

DIDIC also contributed, along with other investors, in the establishment of a private power generation project in Salalah.

Oman Daily Observer