Savola EGM to vote on capital cut, distribution of Almarai shares on Dec. 12

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Savola’s shareholders will vote on the board’s recommendation to distribute its entire 34.52% stake in Almarai, totaling 345.22 million shares, as an in-kind distribution to eligible shareholders, a material transaction requiring shareholders’ approval.

The distribution involves transferring Almarai shares, valued at SAR 8.34 billion, in compensation from Savola’s capital reduction, with the remaining shares to be distributed as in-kind dividends from retained earnings.

Distribution will be proportional, with Savola’s 345.22 million Almarai shares divided by Savola’s 1.13 billion shares, equating to 0.3044 Almarai shares per Savola share.

Eligibility will be granted to Savola shareholders of record by the close of trading on the EGM date.

Eligible shareholders will receive their Almarai shares within seven working days from the EGM date.

Savola’s board recommended a capital reduction from SAR 11.34 billion to SAR 3 billion, or 73.54%, to adjust its capital structure and enable share distribution.

The Capital Market Authority (CMA) earlier approved the capital cut, with creditor objections extended to Dec. 11, 2024, from Nov. 10, 2024, according to Argaam’s data.

Savola has issued additional explanatory materials for the capital reduction and distribution process.