SAPTCO shareholders approve withholding FY2019 dividend

Saudi Public Transport Co.’s (SAPTCO) shareholders approved withholding dividend for the fiscal year 2019 during the ordinary general meeting (OGM) held on April 27, 2020, the company said in a bourse statement.

Shareholders have also approved businesses and contracts concluded with the Company for Cooperative Insurance (Tawuniya) in which a SAPTCO’s board member owns indirect interest. The contract includes providing a medical insurance coverage for SAPTCO’s employees at SAR 21.5 million for FY2020.

They also approved businesses and contracts concluded with SAPTCO’s 50%-owned subsidiary, Saudi Emirates Integrated Transportation Co. (SETCO).

The contracts include providing technical and other services worth SAR 3.4 million, selling 350 used buses worth SAR 32 million, as well as providing a SAR 10 million interest-free loan to SETCO to meet its operational commitments.

According to data compiled by Argaam, SAPTCO’s board recommended withholding cash dividend for FY 2019 in a move to support the company’s financial position and boost liquidity amid the spread of coronavirus (COVID-19).