Tihama shareholders to vote on 42.7% capital cut on Nov. 13

09:52 AM (Mecca time) Argaam
Logo ofTihama Advertising and Public Relations Co.

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co.’s shareholders will vote on the board of directors’ recommendation to reduce the company’s capital by 42.7%, from SAR 400 million to SAR 229.22 million, to restructure its capital and offset accumulated losses.
 

The vote will take place during an extraordinary general meeting (EGM) scheduled for Nov. 13.

 

Stocks/Units at All-Time Lows

Company/Fund

Current Capital

SAR 400 mln

Current No. of Shares

40 mln

New Capital

SAR 229.22 mln

New No. of Shares

22.92 mln

Reduction (%)

42.7%

Capital Reduction Method

Writing off 17.08 million shares (0.4270 share for each share held)

Reason

To restructure the company's capital and amortize accumulated losses
 

In a statement to Tadawul, the company said that if approved, the capital reduction will take effect for shareholders of record on the EGM date and those registered with the Securities Depository Center Co. (Edaa) by the end of the second trading day following the EGM.

 

The company emphasized that capital reduction will not affect its financial obligations.

 

Additionally, shareholders will vote on amending Article 4 of the Articles of Association, adding wholesale trading for a fee or under contract to the company’s objectives.

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