Logo of Tourism Enterprise Co.
Tourism Enterprise Co.'s (Shams) board of directors approved, today, Aug. 24, amending the recommendation on reducing capital by 48.21% to SAR 52.57 million, due to the losses incurred in Q2 2021.
|
Capital Reduction Details |
|
|
Current Capital |
SAR 101.50 mln |
|
Number of Shares |
10.15 mln |
|
Capital Reduction Percentage |
48.2% (a share for every 2.047 shares) |
|
New Capital |
SAR 52.57 mln |
|
New Number of Shares |
5.26 mln |
|
|
|
|
Reason of Reduction |
To write off accumulated losses with SAR 48.93 mln |
|
Date of Reduction |
The second day following the extraordinary general meeting that will discuss the capital reduction |
|
Method of Reduction |
Through cancelling 4.89 mln shares |
In a bourse statement, the company said the board also decided to amend the capital increase through a rights issue at SAR 315.4 million, as follows:
|
Capital Increase Details |
|
|
Old Capital |
SAR 52.57 mln |
|
Old Number of Shares |
5.26 mln |
|
Capital Increase Percentage |
600% (six shares for every share) |
|
New Capital |
SAR 367.97 mln |
|
New Number of Shares |
36.80 mln |
|
|
|
|
Reason of Increase |
Supporting working capital, enhancing the company’s financial solvency, rehabilitating the current resort located in the Eastern Province, and entering into investments in the tourism sector, in line with the Kingdom’s Vision 2030, which aims to increase and develop hospitality facilities and other tourism services in accordance with the future plans of the General Entertainment Authority.
|
|
Method of Increase |
Offering rights issue shares worth SAR 315.4 mln |
The entire accumulated losses will be amortized, and there is no material impact from the capital reduction on the company's financial and operational obligations, or financial, operational or organizational performance, the statement added.
The capital reduction and increase are subject to the approval of the official authorities and the extraordinary general meeting.
The Tadawul-listed company is working with the financial advisor, AlJazira Capital, appointed on Sept. 17, 2019, to reduce and increase the capital, in accordance with the updated mechanisms to modify the capital reduction ratio from 34% to 48.21% and the consequent amendments in the agreement.
In September 2019, the board of directors has recommended a 20.5% capital reduction to SAR 80.69 million from SAR 101.5 million to restructure the company’s capital, offset accumulated losses and support future growth, according to data compiled by Argaam.
In April 2021, the company announced that the board of directors amended its capital cut recommendation to 34% from SAR 101.50 million to SAR 66.99 million.
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}