Keir secures approval to convert portion of financial receivables into equity

Logo of Keir International Co.

Keir International Co. announced receiving letters of approval today, July 22, from Irad Holding Co. (one of its major shareholders) and Mohammed Al-Dalaan, allowing the company to use part of the outstanding amounts owed to them in any future capital restructuring through the conversion of debt into equity.

The move aims to support the company’s financial position and is subject to completing all regulatory procedures and obtaining the required approvals.

In a statement to Tadawul, the company said Irad Holding agreed to offer the available SAR 18.25 million outstanding receivables owed to it and its subsidiary, Modern Generation for Operation Systems Co., for use in any future debt-to-equity conversion as part of the company’s capital restructuring, subject to regulatory approvals.

Additionally, Al-Dalaan authorized the use of SAR 10 million of the company's outstanding receivables for any future debt-to-equity conversion, subject to the necessary regulatory approvals and, if relevant, shareholder approval.

The company said there is currently no financial impact, as the approval letters are preliminary and remain subject to completing all required regulatory procedures and obtaining the necessary approvals.

It added that Al-Dalaan and Irad Holding, one of the company’s major shareholders, are related parties.

Keir clarified that this comes as part of its efforts to evaluate options for restructuring its capital and strengthening its financial position, including a proposal to convert certain outstanding debts into new shares, following the completion of the necessary studies and regulatory approvals.

The company said it will disclose any material developments in due course in accordance with the applicable regulations and instructions.