Saudi Cable gets CMA's nod to reduce capital to SAR 66.7 mln

Logo of Saudi Cable Co.

The Capital Market Authority approved today, June 30, the application received from Saudi Cable Co. to reduce its capital by 74.6% to SAR 66.73 million from SAR 262.31 million, according to a statement.

The approval is conditional on the company's extraordinary general assembly (EGM) nod and completion of the necessary procedures in relation to the applicable regulations.

Saudi Cable will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected effect of such reduction within sufficient time prior to the EGM to enable shareholders to vote on the capital decrease.

The CMA said its approval should never be viewed as an endorsement of the feasibility of the capital decrease, adding its approval of a company's application to reduce its capital merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met.

On June 2, Saudi Cable’s board of directors recommended a 74.6% capital reduction to SAR 66.73 million from SAR 262.31 million to restructure the company’s capital and offset its accumulated losses, Argaam reported.

Moreover, the board recommended a SAR 400 million rights issue to raise the firm’s capital when the planned reduction is complete.