Emaar, the Saudi Economic City Company (Emaar), announced that the Capital Market Authority has approved the company’s request to increase its capital by converting the debt the company will have to the Public Investment Fund (in status of creditor) equal to 2.833 billion riyals in ordinary shares of the company for the benefit of the Public Investment Fund.
The company stated in a press release to “Saudi Tadawul”, today, Thursday, which will be available to view the shareholders’ circular relating to the capital increase of the company through the sale of the debt, as announced.
He explained that he had issued an invitation to hold the company’s extraordinary general meeting at its meeting scheduled for September 12, 2021, to consider the Board of Directors’ recommendation to increase the company’s capital by transferring the debt the company should have owed to the Fund. Public Investments.
The number of shares of the company before the capital increase is 850 million shares and, after the increase, it becomes 1,133 billion ordinary shares.
The company aims to convert debt to improve the company’s liquidity and credit standing in order to provide greater solvency regarding its financial obligations and increase the company’s ability to achieve its growth goals.
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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