United Wire Factories (Aslak) shareholders approved a 20% capital cut to SAR 351 million from SAR 438.75 million on having a capital surplus during the extraordinary general assembly meeting that was held on July 15, 2020, the company said in a statement on Tadawul.
|
Key Figures of the Capital Reduction |
|
|
Current Capital |
SAR 438.75 mln |
|
Number of shares |
43.88 mln shares |
|
Reduction (%) |
20% (canceling 1 for every 5 shares) |
|
New Capital |
SAR 351 mln |
|
New number of shares |
35.10 mln shares |
|
Method |
Writing off 8.78 mln shares and paying SAR 10 per share for shareholders as a compensation for the canceled shares. The capital cut process will be financed from the company’s cash balances. |
|
Reason |
Excess of capital above needs |
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Capital cut date |
The second trading day following the end of creditors objection period |
The EGM also approved amending articles 7 and 8 of the company’s bylaws related to capital to match the capital cut in addition to amending article 47 related to dividend distributions.
In a separate statement, the company said that creditors’ objection period will begin today, Thursday, July 16, 2020 and will continue until September 13, 2020.
Creditors are allowed to object to the process trough sending registered mail to the company’s head office.
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