Savola seeks CMA approval to cut capital to SAR 3B

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Savola Group, on Oct. 1, filed for the approval of the Capital Market Authority (CMA) on a 73.54% capital reduction from SAR 11.34 billion to SAR 3 billion, according to a statement to Tadawul.

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The capital cut is subject to the approval of the company's shareholders and the CMA. It is linked to the proposed in-kind distribution of Savola’s entire stake in Almarai Co. to Savola’s eligible shareholders.

The company will duly reveal any related developments, the statement added. Savola Group’s board of directors recommended reducing the company’s capital by 73.54% from SAR 11.33 billion to SAR 3 billion, Argaam earlier reported.

The reduction will involve canceling shares, with eligible shareholders receiving Almarai’s shares at a fair value equal to the nominal value of the canceled shares, after adjusting the share fractions, if any.