Emaar EC amends capital cut recommendation to 53.8%

Logo of King Abdullah Economic City 

Emaar The Economic City Co.’s (Emaar EC) board of directors decided, on Oct. 26, to amend its capital cut recommendation from 49.69% to 53.83%.

Accordingly, the company’s capital will be reduced from SAR 11.33 billion to SAR 5.23 billion, the company said in a statement to Tadawul.

The capital reduction will not significantly impact the company’s liabilities, operations, or performance. It is also subject to approval by regulatory authorities and the extraordinary general assembly (EGM), the statement added.

Emaar EC explained that this step is part of its financial restructuring plan, aimed at boosting its capacity to advance its growth plans.

The company previously appointed SNB Capital as its financial adviser for the capital reduction and Khoshaim & Associates as its legal adviser. Emaar EC submitted the application for the capital decrease to the Capital Market Authority (CMA) on Sept. 20, 2024, and will amend this filing to reflect the updated recommendation.

On Sept. 8, Emaar EC’s board of directors decided to reduce capital by 49.69% from SAR 11.33 billion to SAR 5.70 billion, according to data compiled by Argaam.

Emaar EC has announced its plan to restructure its financial position, aimed at enhancing its ability to move forward with its growth initiatives. The plan includes restructuring bank facilities, securing a loan from a new shareholder, reducing capital, and converting debt.