CMA fines Saudi Cable for failing to disclose development regarding Al-Nawasi General deal

Logo of Saudi Cable

The Capital Market Authority (CMA) decided to impose a fine of SAR 30,000 on Saudi Cable Co. for failing to disclose to the authority and the public, without delay, a new material development regarding the previously announced material development.

The authority said in a statement that the company applied for the bond execution writ in the Enforcement Court on June 27, 2021, and it did not disclose that on the Saudi Exchange’s (Tadawul) website until Aug. 12, 2021.

This is a violation of paragraph (a) of Article (30) of the Listing Rules and paragraph (d) of the Part “General Instructions" of the Instructions for Companies announcements.

According to data compiled by Argaam, on May 5, Saudi Cable announced the purchase of SAR 200 million worth of new cars on credit from Al-Nawasi General Trading & Contracting Co. (NTC) to resell them and finance working capital.

The deal was not implemented due to the failure of the latter to fulfil the contract requirements on the agreed dates.

NTC Co. subsequently exceeded the time limits, forcing Saudi Cable to submit a request, on June 27, for the implementation of an order for the return of advance payment, resulting in the services of NTC Co. being suspended.

Furthermore, the company said at the time that it currently plans to initiate a legal claim before the commercial court to approve the termination of the contract and claim the amount illegally obtained by NTC Co., in addition to the penalty clause and other related claims.