Alinma Hospitality REIT Fund’s board of directors approved the repurchase of 10.2 million of the fund’s units
Alinma Hospitality REIT Fund‘s board of directors approved, on Oct. 16, the repurchase of 10.2 million of the fund’s units, Alinma Capital, the fund manager, said in a statement to Tadawul. 
The board believes the units are currently trading below their fair value. Thus, the buyback aims to hold the units as treasury units for use in swap transactions to acquire new assets or for potential resale in the future.
The company said the repurchase will be financed through one or more of the following sources: the fund’s credit facilities or surplus cash flows, provided it does not not affect distributions. This aims to serve the interests of the fund’s unitholders.
The buyback requires unitholders’ approval through a special resolution authorizing the fund manager to complete the buyback within a maximum period of 12 months from the resolution date.
The repurchase will be conducted through the market, not through a negotiated deal. Any treasury units acquired by the fund will carry no voting rights at unitholder meetings. Treasury units will account for 10% of the fund’s issued units.
The execution of the buyback will depend on market developments and the unit price, the company said, adding that the decision to repurchase units remains at the fund manager’s discretion and is not mandatory.
Alinma Hospitality REIT Fund’s board of directors approved the repurchase of 10.2 million of the fund’s units
Alinma Hospitality REIT Fund‘s board of directors approved, on Oct. 16, the repurchase of 10.2 million of the fund’s units, Alinma Capital, the fund manager, said in a statement to Tadawul.
The board believes the units are currently trading below their fair value. Thus, the buyback aims to hold the units as treasury units for use in swap transactions to acquire new assets or for potential resale in the future.
The company said the repurchase will be financed through one or more of the following sources: the fund’s credit facilities or surplus cash flows, provided it does not not affect distributions. This aims to serve the interests of the fund’s unitholders.
The buyback requires unitholders’ approval through a special resolution authorizing the fund manager to complete the buyback within a maximum period of 12 months from the resolution date.
The repurchase will be conducted through the market, not through a negotiated deal. Any treasury units acquired by the fund will carry no voting rights at unitholder meetings. Treasury units will account for 10% of the fund’s issued units.
The execution of the buyback will depend on market developments and the unit price, the company said, adding that the decision to repurchase units remains at the fund manager’s discretion and is not mandatory.
