Shaker withdraws capital hike recommendation after financial position improves

Logo of Al Hassan Ghazi Ibrahim Shaker Co.

Al Hassan Ghazi Ibrahim Shaker Co.’s (Shaker) board of directors decided to withdraw its recommendation to the extraordinary general assembly and cancel its earlier plan to increase capital via rights issue offering.

The board’s decision came after noting the company’s improved financial position and higher operating cash flow, Shaker said in a statement to Tadawul.

In addition, Shaker settled long-term debt, and, the company continues to have adequate access to local banking facilities that will fuel its future growth plans, the statement noted.

The decision not have any material impact on Shaker’s consolidated financial results or its shareholders, the company said.

The board reassessed thoroughly and carefully its previous recommendation regarding the capital increase by offering SAR 249 million rights issue shares, and decided that it is in the best interest of the shareholders, to withdraw the recommendation to the extraordinary general assembly and cancel the offering.

The board will continue to evaluate all future financing options to achieve the company's goals, the statement noted.

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