City Cement Co.’s board of directors on Nov. 4 recommended 26 percent capital cut to SAR 1.4 billion from SAR 1.89 billion through share cancellation, the company said in a statement on Tadawul.
The capital reduction will be financed from the company’s internal resources and loans.
The process will have no material impact on operations, the company said, expecting the capital cut to bolster its profitability and performance.
The capital cut will be implemented on the second day after end of creditor objection period.
The capital reduction is subject to shareholders and regulatory authorities’ approvals.
City Cement will hire a financial adviser for the capital cut and submit the related request to the Capital Market Authority (CMA) for approval later on.
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Key Figures of the Capital Reduction |
|
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Current Capital |
SAR 1.89 bln |
|
Number of shares |
189.2 mln shares |
|
Reduction (%) |
26% |
|
New Capital |
SAR 1.4 bln |
|
New number of shares |
140 mln shares |
|
Method |
Cancellation of 26% of shares |
|
Driver |
The company has excess capital |
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