Aslak announces capital cut enforcement as creditor objection period ends

United Wires Factories Co. (Aslak) did not receive any objection from its creditors during the creditor objection period ended Sept. 13, 2020, related to the capital reduction process.

The company said in a bourse statement that the capital will be reduced by writing off 8.77 million shares and compensating the eligible shareholders with a par value of SAR 10 per canceled share.

The shares will be issued in favor of the shareholders of Aslak who own shares at the end of trading on Sunday, Sept. 13, 2020, and those registered with the Depository Center at the end of the second trading day following the end of the creditors' objection period.

According to data compiled by Argaam, Aslak shareholders approved a 20% capital cut to SAR 351 million from SAR 438.75 million on having a capital surplus during the extraordinary general assembly meeting held on July 15, 2020.

The creditors’ objection period began on Thursday, July 16, 2020, and ended on Thursday, Sept. 13, 2020.

Under the Companies Law, the decision to reduce the capital will be effective immediately after the creditors' objection period has expired, in the absence of any outstanding objection from creditors.