City Cement Co. said in a bourse statement today that creditor objection period ended yesterday, Oct. 25, 2020, with no claims received.
Therefore, the Saudi cement producer will reduce capital by 26% to SAR 1.4 billion from SAR 1.89 billion through cancelling 49.2 million shares at a par value of SAR 10 each, totaling SAR 492 million.
In August, the company’s shareholders approved a 26% capital cut to SAR 1.4 billion from SAR 1.89 billion, on having a capital surplus, during the extraordinary general meeting (EGM) held on Aug. 25, Argaam reported.
The creditor objection period began on Thursday, Aug. 27, 2020.
The Saudi Stock Exchange (Tadawul) said that a trading halt will be placed on the company’s shares for two business days as of today, Oct. 26, until the Securities Depository Center Co. (Edaa) deposits compensation for share write-offs in the shareholders’ portfolios.
The trading halt will be lifted on Tuesday, Oct. 27, 2020, with the fluctuation limit based on a stock price of SAR 22.16. Outstanding orders will be also cancelled.
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Key Figures of the Capital Reduction |
|
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Current Capital |
SAR 1.89 bln |
|
Number of shares |
189.2 mln shares |
|
Reduction (%) |
26% (1 share for every 3.85 shares held) |
|
New Capital |
SAR 1.4 bln |
|
New number of shares |
140 mln shares |
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Method |
Writing off 49.2 million shares and paying SAR 10 per share to shareholders as a compensation for the cancelled shares. |
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Reason |
Excess capital |
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Capital cut date |
The second trading day following the end of creditors objection period |
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