AMAK says canceling transfer to statutory reserve unrelated to capital hike

Logo of Al Masane Al Kobra Mining Co. (AMAK)

Al Masane Al Kobra Mining Co. (AMAK) stated that the cancellation of the board of directors’ recommendation on transferring an amount from the share premium account to the statutory reserve is not related to a proposal for raising the capital through a 1-for-2.75 bonus-share distribution.

The clarification comes after receiving inquiries from some shareholders about canceling the second paragraph of the board's recommendation, according to a Tadawul statement.  

The company confirmed that the 36.36% capital hike recommendation remains and will be reviewed on August 1 during the company’s extraordinary general assembly (EGM) meeting.  

Last Monday, AMAK’s board of directors unanimously decided to cancel its recommendation to transfer an amount of SAR 268.6 million from the share premium account to the statutory reserve, according to data compiled by Argaam.  

The share premium account will remain unchanged, given the recent changes to the Companies Law, namely Article 123 related to the creation of reserves.  

AMAK will hold the EGM on August 1 to discuss a 36.36% capital increase through a bonus share issue by capitalizing SAR 240 million from the share premium account.