Amiantit board recommends 69.06% capital cut, SAR 221 mln rights issue

Logo of Amiantit Co.

Saudi Arabian Amiantit Co.’s board of directors recommended, on Nov. 22, a 69.06% capital reduction from SAR 320 million to SAR 99 million through writing off 22.1 million shares (one share for every 1.447 shares).

The recommendation was made for the extraordinary general assembly meeting (EGM) and is subject to the approval of the competent regulatory authorities and the company’s shareholders.

Al-Wasatah Capital has been appointed as financial advisor for the planned capital reduction and the subsequent capital increase. Also, an announcement will be made when the company submits the capital cut application to the Capital Market Authority (CMA) for approval.

The board of directors also recommended capital increase through a SAR 221 million rights issue, following the completion of the capital cut process.

The approval of the EGM on the rights issue is conditional on its approval to the proposed capital reduction.

The capital increase mainly aims to boost the company’s working capital.

Eligibility will be for shareholders of record on the date of the EGM that approved the capital increase, and those who are registered at the Securities Depository Center (Edaa) by the close of the second trading day following the EGM date.

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