Amiantit to cut statutory reserve by 30.2% to partially offset accumulated losses

Saudi Arabian Amiantit Co.'s board of directors recommended cutting the statutory reserve by 30.2% to partially offset the accumulated losses, the company said in a bourse filing.

A sum of SAR 57.3 million will be transferred from the statutory reserve amounting to SAR 189.47 million to partially offset SAR 206.88 million worth of accumulated losses. Thus, the company's accumulated losses would stand at SAR 149.59 million.

The company said it will announce the reduction of the accumulated losses, upon the legal accountant report.

Amiantit said in a separate bourse filing that its board of directors should invite shareholders to hold an extraordinary general meeting (EGM) before Sept. 4, and the EGM should convene maximum by Oct. 5, 2020. 

In case the company failed to hold the general meeting within 45 days ending on Oct.5, 2020, or if the general meeting was held and failed to issue a decision, the company would be considered terminated, as per the Corporate Law.

Earlier in June, Amiantit’s board of directors recommended a 41.95% capital reduction to offset accumulated losses ahead of a planned rights issue.