Al-Hassan Ghazi Ibrahim Shaker Company (Shaker) announced the decision of the Board of Directors, in the meeting held today, Sunday, to recommend to the Extraordinary General Meeting to reduce the capital of the company and therefore increase it.
The company stated in a statement in “Saudi Tadawul”, that the capital before the reduction is 630 million riyals, and after the reduction it becomes 472.5 million riyals, with a reduction of 25%.
He added that the number of shares after the reduction becomes 47.25 million shares, compared to 63 million shares before the reduction.
Shaker explained that the reason for the capital reduction is the restructuring of the company’s capital to pay off the accumulated losses.
Indicates the method of reducing the capital represented in the cancellation of 15.75 million shares of the company, reducing one share for every 4 shares.
The reduction in the company’s capital has no effect on its financial obligations, operations or financial, operational or organizational performance.
The date of the reduction will be the end of the second trading day following the extraordinary general meeting in the reduction of the share capital was approved and the proposal to reduce the share capital is subject to the approval of the competent supervisory authorities and the extraordinary general meeting.
The Board of Directors has decided to appoint Al-Jazira Capital Company as a financial advisor regarding the capital reduction and increase, and an announcement will be made in that moment when a request file for the reduction and increase of the company’s capital will be submitted to the Capital Market Authority for approval.
The board of directors of the company also recommended, during the extraordinary general meeting, and after completing the capital reduction process, to increase the capital of the company by offering shares in rights worth 250 million riyals.
The approval of the extraordinary shareholders’ meeting on the procedure for increasing the share capital by issuing shares in option is subject to the approval of the extraordinary shareholders’ meeting on the proposed reduction of the share capital.
The main objective of the company’s capital increase is to increase its financial solvency and reduce the financing rates and charges incurred by them.
Without prejudice to the fact that the eligibility for subscription rests with the shareholders holding the shares on the day of the extraordinary general meeting which approved the share capital increase in option and whose names appear in the issuer’s shareholders’ register at the Securities Deposit Center (Edaa) at the end of the second trading day following the date of the general meeting Extraordinary, the date of which will be determined in followed, God willing.
Al Jazira Capital will be the financial advisor in the two capital reduction and increase operations.
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