The Saudi Capital Market Authority has announced the issuance of its decision approving Emaar the Economic City’s request to increase its capital by transferring debts equal to approximately 2.833 billion riyals.
The authority stated in a note today, Sunday, that tale approval is subject to the approval of the extraordinary general meeting of the company and the completion of the related procedures and regulatory requirements.
He added that a circular will be published to shareholders, indicating the reasons for the capital increase and its objectives, sufficiently in advance of the date of the extraordinary meeting, which will subsequently be convened by the company’s board of directors to allow shareholders to vote on the decision to increase the company’s capital by assigning debts.
In this case, if the approval of the Extraordinary General Assembly is not obtained within six months from the date of approval of the Authority, the approval of the Authority will be considered void.
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The authority stated that making the decision to vote without viewing the shareholders’ circular and studying its content can involve high risks, so the shareholder must review the circular and study it carefully to reach the appropriate decision. in venue for voting on the decision to increase the share capital for the aforementioned purpose, and in the case in to whom it is not possible to understand the contents of the Shareholders’ circular, it is preferable to contact a qualified financial advisor.
And he continued: “The approval by the Authority of the request for the company’s capital increase must not be interpreted as an endorsement of the feasibility of the capital increase, in when the decision of the Authority to approve the company’s request means that the legal requirements according to the law on the capital market and its implementing regulations have been complied with. “
Emaar, the Economic City, had announced the recommendation of its board of directors to increase the capital of the company by transferring the debt that the company will have to the Fund for Public Investments, for a total value of about 2.83 billion riyals.
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Emaar, the Economic City, has announced the appointment of Saudi Fransi Capital as financial advisor and the submission of a request for a capital increase by transferring debts to the Capital Market Authority.
The company had reached an agreement to transfer part of its debt to the Ministry of Finance in a stake in the company’s Public Investment Fund, which would reduce the company’s liabilities by approximately 27%.
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