TADCO publishes shareholders’ circular on 80.5% capital cut

Logo of Tabuk Agricultural Development Co. (TADCO) 

Tabuk Agricultural Development Co. (TADCO) published today, Aug. 5, the shareholders’ circular for its capital reduction by 80.5% from SAR 391.8 million to SAR 76.5 million.

The Capital Market Authority (CMA) announced, on July 23, its approval of the company's planned capital reduction from SAR 391.77 million to SAR 76.52 million. Consequently, the number of shares will be cut from 39.18 million to 7.65 million.

The approval is conditional on the extraordinary general meeting's (EGM) nod, the absence of which will lead to suspending the capital reduction process.

The company noted that, if the EGM approves the capital reduction, Tadawul will suspend trading in the company’s shares for two consecutive trading sessions, starting from the day following the EGM’s approval of the capital reduction. Trading will then resume at the adjusted share price.

It added that the capital reduction resolution will become effective, with the number of shares held by shareholders who own shares on the date of the EGM being adjusted based on the company’s shareholder records maintained by the Securities Depository Center Co. (Edaa) at the end of trading on the second day following the EGM related to the capital reduction.

The company also noted that, if the EGM approves the capital reduction, it will approach the Ministry of Commerce to obtain its approval to amend the company’s Commercial Registration and Articles of Association. The financial advisor is Wasatah Capital.