Aslak products
United Wire Factories Co.’s (Aslak) board of directors recommended a capital reduction by 20% from SAR 351 million to SAR 280.8 million, citing a capital surplus, according to a statement to Tadawul.
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Capital Cut Details |
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Current Capital |
SAR 351 mln |
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Number of Shares |
35.10 mln |
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Percentage of Reduction |
20% |
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New Capital |
SAR 280.8 mln |
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Number of Shares |
28.08 mln |
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Reason |
Excess capital above needs |
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Method |
Cancelling 20% of shares, and shareholders will be compensated |
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Date of Capital Cut |
The second trading day after the creditor objection period |
The capital reduction, which will be financed via using the cash surplus, will likely boost the key performance indicators, according to the board of directors.
The capital cut is pending the approval of the competent authorities and the extraordinary general meeting (EGM).
Aslak will later announce the appointment of the financial advisor and will reveal updates as regards filing for the approval of the Capital Market Authority (CMA).
In 2020, Aslak slashed capital by 20% from SAR 438.75 million to SAR 351 million, due to excess capital, data compiled with Argaam showed.
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