Nama Chemicals says committed to restructuring plan

Nama Chemicals is committed to implementing a restructuring plan, as previously announced in January, in compliance with the Capital Market Authority’s (CMA) decision, the company said in a statement to Tadawul Thursday.

Nama will cut its capital by SAR 1.05 billion to SAR 235.2 million to offset its losses.

The chemical producer will then raise its capital to finance the manufacturing of specialty products, and boost capacity of its intermediaries plant.

Meanwhile, the company is likely to wholly or partially divest its subsidiary, Nama Industrial Investments Co.

The sale proceeds will be used to finance Nama’s core activities, dividend payouts and/or reduce its leverage, the statement added.

Nama’s board of directors had earlier recommended an 81.7 percent capital cut from SAR 1.28 billion to SAR 235.2 million. The company will write down 1 share for every 1.224 shares, Argaam earlier reported.

The Saudi market regulator had earlier ordered companies whose accumulated losses stand at a minimum of 50 percent of capital to unveil a turnaround plan.