Logo of Al Jouf Cement Co.

Al Jouf Cement Co.’s board of directors on April 3 recommended to the extraordinary general meeting (EGM) reducing the company’s capital to SAR to 1.08 billion from SAR 1.43 billion, or by 24%, to extinguish the accumulated losses, according to a bourse statement.

 

Details of Capital Reduction

Current Capital

SAR 1.430 bln

Number of Shares

143 mln

Percentage of Capital Cut

24% (0.24 share for every 1 share)

New Capital

SAR 1.087 bln

Number of Shares

108.7 mln

Reason

To restructure capital and offset accumulated losses of SAR 343 mln

Method

Cancelling 34.3 million shares at 0.24-for-1 share

Date of Capital Reduction

The close of the second trading day following the EGM
 

The recommendation to reduce the capital is conditional on obtaining the approval of the relevant authorities and the EGM, the statement noted. 

 

The cement producer will announce when the financial advisor is appointed, as well as when the capital reduction request file is submitted to the Capital Market Authority (CMA). 

 

The board also recommended increasing the company’s capital through a SAR 300 million rights issue to SAR 1.39 billion, after the completion of the capital reduction process. The capital increase details are as follows:

 

Details of Capital Increase via Rights Issue

Capital after Reduction

SAR 1.087 bln

Number of Shares

108.7 mln

Percentage of Increase

28%

New Capital

SAR 1.387 bln

Number of Shares

138.7 mln

Reason

To pay the company's obligations and support its financial position

Method

Adding 30 mln shares

Record Date

Shareholders of record on the EGM date, and those registered at Edaa on the second trading day after the EGM.

 

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