Savola issues prospectus for SAR 6B rights offering

Logo of Savola Group

Savola Group announced the prospectus for its capital increase through a SAR 6 billion rights offering today, Aug. 5.

The capital increase is aimed at enabling the company to enhance its financial position, support its future investment portfolio by repaying loans, and distribute shares in Almarai Co. to shareholders through capital reduction following the rights offering.

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The company will use the rights offering proceeds to repay long-term loans of about SAR 5.95 billion.

According to the prospectus, the company indicated that some major shareholders, namely Aseela Investment Co., Abdul Qader Al-Muhaidib & Sons Co., and Al-Muhaidib Holding Co., have committed to subscribe to their share of the rights issue shares.

Meanwhile, other shareholders, including but not limited to the General Organization for Social Insurance (GOSI) and its subsidiaries, have committed to subscribe to their share of the rights issue shares.

The total number of rights issue shares that shareholders (including major shareholders and non-major shareholders) have committed to subscribe to represents 48% of the total offering.

The company's shareholders will vote on the board’s recommendation to increase capital through a SAR 6 billion rights offering, during the extraordinary general meeting (EGM) to be held on Aug. 25.

The Capital Market Authority (CMA) approved at the end of the last month Savola’s request to increase capital through a rights issue.