Panda Retail approves SAR 695 mln capital cut to offset losses

Shareholders of Panda Retail, a subsidiary by Savola group, on Jan. 16, 2019 approved to reduce the company’s capital for the third time by SAR 695 million to offset accumulated losses.

Accordingly, Savola Group has solely injected SAR 800 million in the grocery store chain’s capital, raising its equity in it to 98.87 percent, the edible oil producer said.

The second capital cut came in June 2018 when Panda Retail’s shareholders aimed to offset SAR 625 million in accumulated losses.

Having invested SAR 1 billion in the grocery firm’s capital, Savola upped its stake in the subsidiary to 97.55 percent.

In 2017, the general assembly of Panda Retail, which was 91 percent owned by Savola, approved cutting its capital and issue premium by SAR 453 million and SAR 192 million, respectively.

The company’s statutory reserve was also reduced by SAR 180 million to offset SAR 825 million losses.