Logo of Fawaz Abdulaziz Alhokair Co.
Fawaz Abdulaziz Alhokair Co.’s (Fawaz Alhokair) board of directors decided on June 29, to authorize the executive management to study ways of restructuring the capital, according to a bourse filing.
This will include capital reduction and subsequent increase in accordance with the company's current financial position.
The authorization also includes the appointing financial and legal advisors as well as presenting to the board a plan on how to increase the solvency of the company, strategic expansion, improving operational and financial performance, and borrowing rates and costs incurred.
The decision aims to reduce the company’s accumulated losses, amounting to SAR 1.0378 billion by the end of the fiscal year on March 31, 2021, equivalent to 49.4% of the company’s capital of SAR 2.1 billion.
Any material developments, including but not limited to the percentage of capital reduction, date of reduction, and capital increase percentage, will be announced in due course as stipulated by the laws and regulations.
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