Savola to pay compensation for unsubscribed rights issue shares’ on Oct. 10

Logo of Savola Group

Savola Group will start distributing compensation worth SAR 592.43 million to rights holders who did not exercise their right to subscribe to the new shares on Thursday, Oct. 10.

In a statement to Tadawul, the company said that Al Rajhi Bank will deposit the compensation amounts into the bank accounts associated with the portfolios of eligible individuals who did not exercised their subscription rights for the new shares.

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As for the eligible investors whose bank account data is not available or incomplete, they can contact company's investor relations, the statement added.

The company will receive the aggregate offer price collected from the rump offering. The remaining proceeds exceeding the offer price, if any, will be distributed to those entitled to it as per the date indicated above.

Savola shareholders approved increasing capital via a SAR 6 billion rights issue, during the extraordinary general meeting (EGM) held on Aug. 25, as reported by Argaam.

The rights issue was 94.2% subscribed, and the rump offering was 814.2% covered.