Fitaihi shareholders approve 50% capital cut, creditors objection period begins today

A branch of Fitaihi Holding 

Fitaihi Holding Group’s shareholders approved a 50% capital cut to SAR 275 million from SAR 550 million, during the extraordinary general assembly meeting (EGM) held on July 7, the company said in a statement on Tadawul.

The capital cut will be through writing off 27.5 million shares, on having a capital surplus.

There is no material impact of the capital reduction on the company's financial or operating obligations, operations, or performance.

The management expects the reduction to positively impact the ratios of the company's performance and profitability indicators.

Fitaihi will finance the capital reduction process from its own resources.

In a separate bourse statement, the company announced the start of the creditors’ objection period in accordance with the provisions of Article (145) of the Companies Law.

Accordingly, any creditor of Fitaihi will have the right to object to the reduction process during the objection period.

The objection period starts today, July 8, for a period of 60 days until Sept. 5.