Savola extends creditor objection period on capital cut to December

Logo of Savola Group

Savola Group extended the creditor objection period until Dec. 11, instead of ending on Nov. 10 as previously announced.

The capital reduction remains subject to the shareholder approval during the extraordinary general assembly (EGM), which is scheduled to be held following the end of the creditors’ objection period and after obtaining the regulatory approvals, Savola said in a statement to Tadawul.

For more news on listed companies

After the Capital Market Authority’s (CMA) approval, Savola will publish the shareholders’ circular containing the proposed method and the expected effects of the capital reduction, the company said in a separate statement.

Savola will call for an EGM, in addition to complying with the creditors’ objection period, as required by the relevant regulations.

The capital cut will enable Savola to distribute in-kind its entire stake in Almarai Co. to its eligible shareholders (the substantial transaction). This in-kind distribution is subject to shareholders’ approval as well.

According to data available on Argaam, Savola obtained on Oct. 27 the CMA’s approval on its request to cut capital from SAR 11.34 billion to SAR 3 billion, thus reducing the share capital from 1.13 billion to 300 million.

It is noteworthy that the creditors' objection period began on Sept. 26.