Saudi Cable’s capital cut revised down to 47%

Saudi Cable Co.’s (SCC) board of directors revised down on Monday its recommendation on capital reduction to 46.83 percent from previous 65.92 percent through canceling 35.59 million shares, the company said in a statement to Tadawul.

The amended capital cut request will be submitted again to Saudi Arabia’s market regulator, the Capital Market Authority (CMA).

The decision came after the cable producer had received some notes on the capital cut request, including its failure to comply with the listing regulations and to disclose its audited annual financials for fiscal year 2016 within the specified period.

Accordingly, SCC used Q3-2016 figures, the latest audited financial results, in compliance with Article 150 of the corporate law.

The company said there will be no material impact from the capital reduction on SCC’s creditors.

SCC’s board had earlier recommended a 65.92 percent capital reduction to SAR 259 million from SAR 760 million, to offset accumulated losses through canceling 50.1 million shares, Argaam earlier reported.