Arabian Pipes shareholders to discuss 75% capital cut to SAR 100 mln on Feb. 14

10/02/2022 Argaam
Logo of Arabian Pipes Co.

Logo of Arabian Pipes Co.


Arabian Pipes Co.’s shareholders will discuss the board’s recommendation to reduce capital by 75% from SAR 400 million to SAR 100 million, during the extraordinary general meeting (EGM), slated for Feb. 14, 2022, according to a bourse filing.

 

The capital will be cut via cancelling 30 million shares, at 3-for-4 shares.

 

The move is meant to restructure capital and write off 92.85%, or SAR 323.1 million of the accumulated losses as of 30 June 2021.

 

In case the capital reduction is approved, the capital cut will be effective on the EGM day.

 

There is no relevant material impact on the company’s financial obligations.

 

Shareholders will also discuss amending some of the articles of association, the statement added.

 

Capital Reduction Details

Current Capital

SAR 400 mln

Number of Shares

40 mln

New Capital

SAR 100 mln

Number of Shares

10 mln

Percentage

75% (3-for-4 shares)

Reason

Restructure capital and write off 92.85%, or SAR 323.1 million of the accumulated losses as of 30 June 2021

Date of Capital Reduction

Close of second day of trading after the EGM

Method

Cancelling 30 million shares

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