Al Akaria's wholly-owned subsidiary approves capital cut from SAR 100 mln to SAR 500,000

Logo of Saudi Real Estate Co. (Al Akaria)

Saudi Real Estate Co. (Al Akaria) said the extraordinary general assembly meeting (EGM) of its wholly-owned subsidiary, Al Widyan Saudi Real Estate Co., approved reducing the latter’s capital from SAR 100 million to SAR 500,000, divided into 50,000 nominal shares of equal value of SAR 10 each.

During the meeting, which was held on Aug. 7, shareholders also approved amending Article No. 7 of the Articles of Association related to the company’s capital in accordance with the reduction decided in the first clause of the amendment as follows: “The company’s capital was determined at SAR 500,000, divided into 50,000 shares of nominal value, the value of each of which is SAR 10, and all shares are ordinary.”

Furthermore, shareholders amended Article No. 8 of the Articles of Association related to subscribing to shares in accordance with the reduction prescribed in the first clause.

Al Akaria noted that the capital reduction will not have any effect on the continuity of the company's business or its obligations.

Accordingly, Al Widyan Saudi Real Estate will complete the rest of the statutory procedures resulting from the decision of the general assembly’s resolution.

In July 2018, the Ministry of Commerce and Industry issued a decision approving the establishment of Al Widyan Saudi Real Estate as a wholly-owned subsidiary of Al Akaria, with an initial capital of SAR 1 billion, to implement and manage Al Widyan residential project in Riyadh, according to Argaam’s data.

In Dec. 2018, the company announced approving increasing capital to SAR 2.85 billion, including an in-kind share representing the project’s land value of SAR 2.6 billion.

Al Akaria obtained, on Dec. 10, 2020, the approval of the Ministry of Commerce and Industry on reducing the capital of Al Wedyan Real Estate Co. from SAR 2.853 billion to SAR 100 million, through the offloading of 275.3 million shares.