Al Mazaya Holding Co (K.S.C) a leading property firm in the region, signed a contribution contract with “Oman Construction” to share in a real estate investment portfolio in Oman with a capital of OMR 3.1 million. Al Mazaya’s share is 40% while 12% is for Oman Construction and 12% for “Mina” real estate company. The remainder of the percentage is submitted for IPO from a chosen group of investors and real estate companies.
A Lawsuit disclosure
With reference to the above subject and to paragraph (14،22)of article 4-1-1 of chapter 4 of book 10 of the executive regulation of law No.7 of 2010 regarding the establishment of the Capital Markets Authority and regulating securities’ activities, kindly find the attached Lawsuits disclosure form.
Lawsuits Disclosure Form
| Date: | 2020/06/18 |
| Name of the Listed Company | Al Mazaya Holding Co. K.S.C.P |
| Lawsuit Number | number is not yet issued |
| Subject of the Lawsuit | Two subsidiaries of Al Mazaya Holding Company in the United Arab Emirates had filed a lawsuit before the courts of the Emirate of Dubai with total claim amount of AED 57,876,880, which approximately equals KD 4.8 million as of May 31, 2020 against some investors for developing real estate projects in Dubai, in addition to claiming an estimated compensation including opportunity cost, extensive duplicated effort and punitive damages with total amount of AED 87,977,030, which approximately equals KD 7.4 million, in addition to the legal interest to be calculated on the claim at 9% rate from the date of the lawsuit filing until the date of the full settlement, as well as the payment of the fees and expenses and attorney fees. |
| The Court Judgement / Verdict date | No court verdict has been issued |
| The name of the Court that issued the Judgement / Verdict | the courts of the Emirate of Dubai – No court verdict has been issued yet |
| Parties of the Lawsuit | Al Mazaya Emirates real estate development and Al Mazaya Real Estate FZ-LLC (subsidiaries)
|
| The Judgment / Verdict in favor of | No court verdict has been issued |
| Court of First Instance Judgment / Verdic | No court verdict has been issued |
| Court of Appeal Judgment / Verdict | No court verdict has been issued |
| Court of Cassation Judgment / Verdict | No court verdict has been issued |
| The expected financial impact on the company as a result of the Judgment / Verdict | Currently, there is no financial impact until a verdict is issued. If the final verdict was in favor of the company, this will result in profits equal to the adjudged amount, in the form of reversing the related provisions for the claimed amount of developing the real estate projects in addition to any amount adjudged by the court regarding the compensations claimed by the company, which will be recognized in the company’s consolidated financial statements upon execution of the verdict and receiving the related amounts. However, If the lawsuit is lost (May Allah forbids), there will be no financial impact on the company due to the recognition of the necessary provisions in the company’s records. |
