SPM amends capital cut recommendation upon Q3 losses

Saudi Paper Manufacturing Co.’s board of directors has amended its capital cut recommendation to 62.45 percent to become SAR 92 million, the company said in a statement on Tadawul.

The decision was based on the losses that the company incurred for Q3 2019, the statement added.

It also said that this will not affect the company’s liabilities, and the capital cut is pending approval from the general assembly and regulator.

Last month, Saudi Paper Manufacturing’s board of directors recommended a 39.2 percent capital reduction to SAR 149 million to offset accumulated losses, according to data compiled by Argaam.

SPM reported a net loss of SAR 24.2 million for Q3 2019 raising accumulated losses to SAR 153.41 million or 62.6 percent of capital.

In September 2018, the Saudi listed firm cut its capital from SAR 450 million to SAR 245 million through writing off 20.5 million shares to offset accumulated losses.