Saudi Cable files lawsuit against Tathmeer Investment

Logo of Saudi Cable Co.

Saudi Cable Co. sued Thameer Investment Co. on Feb. 2 before the Commercial Court in Jeddah, demanding the annulment of the assignment of rights (assignment of debt) deal between Tathmeer Investment Co., Al Rajhi Bank and Saudi Cable.

In a statement to Tadawul, the company clarified that Tathmeer purchased a SAR 232.77 million outstanding debt owed by the Saudi Cable in favor of Al-Rajhi Bank, after obtaining a discount of SAR 77.77 million from the principal of the debt from Al-Rajhi Bank.

However, Tathmeer asked Saudi Cable to transfer the full amount of SAR 232.77 million into shares with a nominal value of SAR 10 per share based on an agreement signed between the two parties.

According to the statement, the reasons for the company's filing of the lawsuit are that the agreement contained a number of formal and substantive violations, and that it was signed by someone who had no capacity to represent the company by signing at that time. Moreover, the extraordinary general meeting (EGM) (the entity with authority) rejected the agreement on June 22, 2025.

Saudi Cable also noted that the potential financial impact cannot be assessed, adding that it will disclose any material developments related to this case on time.

It further said that the date of the judicial hearing was set for 7 Ramadan 1447 AH. In the event of the rejection of the lawsuit by a final ruling, the matter will remain unchanged.

Nonetheless, if the lawsuit is accepted by a final ruling, the situation will revert to its pre-agreement state.

In November 2023, Saudi Cable had signed a tripartite agreement with Al Rajhi Bank and Tathmeer, under which Al Rajhi transferred to Tathmeer its rightful claim on a due debt worth SAR 232.74 million from Saudi Cable, according to data available with Argaam.

In June 2025, about 92.98% of the company’s shareholders rejected a debt assignment agreement involving the company, Tathmeer, and Al Rajhi Bank.