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Savola Group’s shareholders are set to vote on a 73.54% capital cut from SAR 11.34 billion to SAR 3 billion during the extraordinary general meeting (EGM) that will be held on Dec. 12, as shown in the following table:
|
Capital Cut Details |
|
|
Current Capital |
SAR 11.34 bln |
|
Number of Shares |
11.33 bln |
|
New Capital |
SAR 3 bln |
|
New Number of Shares |
3 bln |
|
Percentage of Capital |
73.54% |
|
Reason |
Current capital surpasses company needs. The capital cut would also facilitate the in-kind distribution of Savola's entire stake in Almarai Co. to eligible shareholders, while enhancing the company’s capital structure |
|
Date |
If approved, eligibility will be to shareholders of record and those registered with Edaa on the second trading day following the EGM date |
|
Method |
Canceling 833.98 mln shares, or 73.54% of Savola’s capital, by granting eligible shareholders a corresponding number of Almarai shares with a fair value equal to the nominal value of the canceled shares. Adjustments will be made for any fractional shares, based on Almarai’s stock market value on the distribution date |
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Savola’s shareholders will vote on the board’s recommendation to distribute its entire 34.52% stake in Almarai, totaling 345.22 million shares, as an in-kind distribution to eligible shareholders, a material transaction requiring shareholders’ approval.
The distribution involves transferring Almarai shares, valued at SAR 8.34 billion, in compensation from Savola’s capital reduction, with the remaining shares to be distributed as in-kind dividends from retained earnings.
Distribution will be proportional, with Savola’s 345.22 million Almarai shares divided by Savola’s 1.13 billion shares, equating to 0.3044 Almarai shares per Savola share.
Eligibility will be granted to Savola shareholders of record by the close of trading on the EGM date.
Eligible shareholders will receive their Almarai shares within seven working days from the EGM date.
Savola’s board recommended a capital reduction from SAR 11.34 billion to SAR 3 billion, or 73.54%, to adjust its capital structure and enable share distribution.
The Capital Market Authority (CMA) earlier approved the capital cut, with creditor objections extended to Dec. 11, 2024, from Nov. 10, 2024, according to Argaam’s data.
Savola has issued additional explanatory materials for the capital reduction and distribution process.
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