Saudi Cable to vote on rejecting debt capitalization deal with Al Rajhi Bank on June 22

Logo of Saudi Cable Co.

Saudi Cable Co. (SCC)’s shareholders will convene on June 22 an extraordinary general assembly to vote on a number of agenda items, including the rejection of an assignment of rights (debt assignment) agreement with Al Rajhi Bank and Tathmeer Investment Co.

Shareholders will vote to reject the agreement to capitalize Al Rajhi Bank’s debt and convert it into equity shares for the benefit of Tathmeer.

In a statement to Tadawul, the company noted that its board of directors sees that the capitalization agreement did not fulfill regulatory conditions, as the debt assignment require the approval of the company’s EGM. It also recommended rejecting the capitalization of Al Rajhi Bank’s debt, as it entails harm to the rights of the company and its shareholders to seek the opinion of authorized expert or evaluator to set the stock price. 

In November 2023, Saudi Cable announced that an assignment of rights agreement was signed with Al Rajhi Bank and Tathmeer, under which Al Rajhi Bank assigned its rights in outstanding debts owed by Saudi Cable at a value of SAR 232.74 million to Tathmeer, according to data available to Argaam.