Saudi Printing board proposes 89.42% capital cut to offset accumulated losses

Logo of Saudi Printing and Packaging Co.

Saudi Printing and Packaging Co.'s board of directors recommended cutting capital by 89.42% to SAR 68.97 million from SAR 652.07 million, in a bid to amortize SAR 583.10 million accumulated losses, the company said in a statement to Tadawul.

The proposed reduction will not have a material impact on the company’s obligations, operations, financial or operational performance or regulatory standing, it added. The move is subject to approval by regulatory authorities and the extraordinary general meeting (EGM).

The company also announced the appointment of Wasatah Capital as the financial advisor for the capital reduction process. It will announce any updates upon submitting the capital reduction application file to the Capital Market Authority to obtain its approval.

The agreement signed with Wasatah Capital, in its capacity as the financial advisor, also includes studying the appropriate options and procedures for restructuring the company’s capital in a manner that supports its financial position and enhances its stability, with the necessary recommendations to be submitted in due course.

Any procedures that may be approved based on the results of this study will be subject to obtaining the required regulatory approvals, it added.