Alhokair Group gets CMA nod on capital cut to SAR 315 mln

Alhokair Group headquarters 

Abdulmohsen Alhokair Group for Tourism and Development’s (Alhokair Group) obtained the Capital Market Authority’s (CMA) approval to reduce its capital by 51.54% from SAR 650 million to SAR 315 million, the authority said in a statement. 

The capital reduction is conditional on the company's extraordinary general assembly (EGM) approval and completion of the necessary regulatory procedures.  

The company will publish a disclosure document to its shareholders about the proposed capital reduction method and the impact within a sufficient time prior to the EGM date, to enable shareholders to vote on the capital decrease. 

The CMA's approval should never be deemed as an endorsement of the feasibility of the capital decrease. The approval merely means that the regulatory requirements as per the Capital Market Law and its executive regulations have been met, the statement added. 

In August, Alhokair Group filed a request for the approval of the CMA on a capital reduction by 51.54% from SAR 650 million to SAR 315 million, to offset 98.93% of accumulated losses, according to data compiled by Argaam.