Aslak shareholders OK 20% excess capital reduction, stock placed under 2-session trading halt

Logo of United Wire Factories Co. (Aslak)

Shareholders of United Wire Factories Co. (Aslak) approved the board’s proposal for reducing the company’s excess capital by 20% to SAR 280.8 million from SAR 351 million during the extraordinary general meeting held on Aug. 2.

In a statement to Tadawul, the company said the capital reduction will be financed from its internal resources.

The move will have no material impact on the company’s financial or operating obligations, operations, or performance. The management expects the reduction to boost its performance and profitability indicators.

In a separate statement, the Saudi Exchange (Tadawul) said the fluctuation limit after the capital reduction will be based on a share price of SAR 29.70. Outstanding orders will be canceled.

The stock will be placed under a two-session trading halt starting today, Aug. 3, Tadawul added.

The Securities Depository Center (Edaa) will apply the capital reduction to shareholders’ portfolios. The trading halt will be lifted by the close of trading on Aug. 6.