Savola urges paper certificate holders to deposit shares for rights issue

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Savola Group urged its shareholders with paper certificates to promptly deposit their shares into investment accounts, a statement said to Tadawul.

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This action will facilitate their subscription to the new shares offered in the rights issue, which will be available after shareholders’ approval.

The company highlighted that this step would help expedite the deposit of their share in Almarai Co. into their investment accounts directly when the group allocates its share in Almarai’s capital to eligible shareholders. This distribution will be subject to the approval of the general assembly and regulatory requirements in accordance with Saudi Arabian laws and regulations.

The company requested that shareholders with paper certificates complete the deposit form and attach a copy of their valid national ID, a power of attorney (if applicable), and the attorney’s ID to deposit their shares into investment accounts. These documents should be submitted to the company at the provided address or presented to their financial brokerage firms.

This announcement is aimed solely at shareholders with paper certificates who do not currently have investment portfolios. Shareholders with existing investment portfolios do not need to take any action.

Savola’s shareholders will vote on increasing capital by SAR 6 billion via a rights issue during an extraordinary general meeting (EGM) scheduled for Aug. 25, data compiled by Argaam showed.

The company aims to use this capital hike to strengthen its financial position and support its future investment portfolio by paying off its debts and enabling it to distribute its shares in Almarai Co. to Savola’s eligible shareholders through a capital reduction following the rights issue.