AMAK cancels SAR 268.6 mln transfer to statutory reserve account

Logo of Al Masane Al Kobra Mining Co. (AMAK) 

Al Masane Al Kobra Mining Co.’s (AMAK) board of directors unanimously decided, on July 10, to cancel its recommendation to transfer an amount of SAR 268.6 million from the share premium account to statutory reserve account.

In a statement to Tadawul, AMAK pointed out that the amount under share premium account will remain unchanged, given the recent changes to the Companies Law, namely Article 123 related to the creation of reserves.

In July 2022, the company’s board of directors recommended transferring SAR 268.6 million from the share premium account to the statutory reserve account after using part of it to increase capital through a bonus share issue.

The company said then that the bonus issue and the transfer of the remaining amount from the share premium account to the statutory reserve account are subject to the approval of the official authorities and the extraordinary general meeting (EGM) on increasing AMAK’s capital and the number of shares issued.

The company will hold the EGM on August 1 to discuss a 36.36% capital increase through bonus share issue by capitalizing SAR 240 million from the share premium account.