Al Sorayai Trading and Industrial Group Co. amended the board of directors’ recommendation to offset the accumulated losses to a capital cut.
The board proposed decreasing capital from SAR 225 million to SAR 65.5 million, through cancelling 15.95 million shares, or 70.89 percent of capital, the company said in a bourse statement on Thursday.
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Capital reduction details |
|
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Current Capital |
SAR 225 mln |
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Number of shares |
22.5 mln shares |
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Capital cut percent |
70.89% |
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New capital |
SAR 65.5 mln |
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New number of shares |
6.55 mln shares |
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Method of capital cut |
Writing off 15.95 mln shares |
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Reasons |
Offsetting accumulated losses |
The capital cut is pending the approval of the extraordinary general meeting and other competent authorities.
Aljazira Capital will advise on the company’s proposed capital cut.
Al Sorayai will likely face termination by Sept. 4 under the Saudi Companies Law if it fails to hold an extraordinary general assembly meeting within 45 days from the date its board of directors was informed of losses or shareholders fail to pass a resolution.
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