Amiantit gets CMA nod on 69.06% capital cut

Saudi Arabian Amiantit Co. headquarters

Saudi Arabian Amiantit Co. obtained the Capital Market Authority’s (CMA) approval on its request to reduce its capital from SAR 320 million to SAR 99 million.

Accordingly, the number of shares will be reduced from 32 million to 9.9 million, the market regulator said in a statement.

The approval is conditional on the company's extraordinary general assembly (EGM) approval and completion of the necessary procedures in relation to the applicable regulations.

Amiantit will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected effect of such reduction within sufficient time prior to the EGM to enable shareholders to vote on the capital decrease.

The CMA's approval of a particular company's application to reduce its capital should never be viewed as an endorsement of the feasibility of the capital decrease. The approval merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met, the statement added.