Logo of Al Jouf Cement Co.
Al Jouf Cement Co.’s board of directors on April 3 recommended to the extraordinary general meeting (EGM) reducing the company’s capital to SAR to 1.08 billion from SAR 1.43 billion, or by 24%, to extinguish the accumulated losses, according to a bourse statement.
|
Details of Capital Reduction |
|
|
Current Capital |
SAR 1.430 bln |
|
Number of Shares |
143 mln |
|
Percentage of Capital Cut |
24% (0.24 share for every 1 share) |
|
New Capital |
SAR 1.087 bln |
|
Number of Shares |
108.7 mln |
|
Reason |
To restructure capital and offset accumulated losses of SAR 343 mln |
|
Method |
Cancelling 34.3 million shares at 0.24-for-1 share |
|
Date of Capital Reduction |
The close of the second trading day following the EGM |
The recommendation to reduce the capital is conditional on obtaining the approval of the relevant authorities and the EGM, the statement noted.
The cement producer will announce when the financial advisor is appointed, as well as when the capital reduction request file is submitted to the Capital Market Authority (CMA).
The board also recommended increasing the company’s capital through a SAR 300 million rights issue to SAR 1.39 billion, after the completion of the capital reduction process. The capital increase details are as follows:
|
Details of Capital Increase via Rights Issue |
|
|
Capital after Reduction |
SAR 1.087 bln |
|
Number of Shares |
108.7 mln |
|
Percentage of Increase |
28% |
|
New Capital |
SAR 1.387 bln |
|
Number of Shares |
138.7 mln |
|
Reason |
To pay the company's obligations and support its financial position |
|
Method |
Adding 30 mln shares |
|
Record Date |
Shareholders of record on the EGM date, and those registered at Edaa on the second trading day after the EGM. |
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