premargin

Element List	Explanation
Introduction	Raydan Food Company announces the signing of a binding agreement to sell one of its operational branches located in Jeddah, Al‑Nuzha District (Hira Branch), for an amount of SAR 8,000,000 excluding VAT, representing approximately 10.94% of the company’s share capital and the net book vaule of SAR 10,181,890 represents 13.92% of the company share capital. The company has simultaneously entered into a lease agreement for the same branch as part of a sale-and-leaseback transaction. The company confirms that the buyer is not a related party and affirms its commitment to disclose any future material developments in accordance with applicable regulations and instructions.
Transaction Details	- Sale of an operational branch - Entering into a related lease agreement - Long-term lease agreement with a duration of ten years - The transaction is integrated and cannot be separated
Transaction Amount	Total transaction value: SAR 8,000,000 (Eight million Saudi Riyals – excluding VAT)
Transaction Conditions	- Binding sale agreement - Related lease agreement for 10 years - Total annual lease value: SAR 700,000 (Seven hundred thousand Saudi Riyals) - Renewal or early termination options (if any)
Parties of the Transaction	Seller: Raydan Food Company Buyer: Bashir Nooralddin R. Alhaddad
Transaction Financing Method	Not applicable
Date of Entering Into The Transaction	2026-01-22 Corresponding to 1447-08-03
Description of Activity of The Asset Subject of The Transaction	Full‑service restaurants
Asset Book Value	The book value of the asset subject to the transaction, according to the latest reviewed interim financial statements for the period ended 30-09-2025, amounts to SAR 10,181,890 distributed as follows: • Land: SAR 4,325,000 • Buildings and improvements: SAR 5,856,890
Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction	There are no standalone financial statements for the asset, as its results are included within the company’s consolidated financial statements
Transaction reasons	The purpose of the transaction is to improve liquidity, settle financial obligations, and release the existing mortgage held by Yanal Company.
Expected Impact of the Transaction on the Company and Its Operations	The proceeds from the transaction are expected to be used to settle part of the existing financial obligations, which will positively reflect on the company’s liquidity and financial position
Details of Using The Proceeds of the Asset Sale	The transaction proceeds will be used to settle part of the existing financial obligations
Related Parties	None
Additional Information	- A lease liability and a right‑of‑use asset will be recognized. - Accounting treatment will follow IFRS 16. - The company will disclose any future material developments.

Announcement by Raydan Food Company regarding the sale of one of its branches and entering into a related lease agreement