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Tourism Enterprise Co.’s (Shams) board of directors amended its capital cut recommendation to 34% from SAR 101.50 million to SAR 66.99 million to offset accumulated losses.
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Key Figures of the Capital Reduction |
|
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Current Capital |
SAR 101.5 mln |
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Number of shares |
10.15 mln |
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Reduction (%) |
34% |
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New Capital |
SAR 66.99 mln |
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New number of shares |
6.7 mln |
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Method |
Writing off 3.45 million shares |
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Date of reduction |
End of second trading day after the EGM date |
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Reason |
Offset SAR 34.51 million in accumulated losses |
In September 2019, the company’s board recommended a 20.5% capital reduction to SAR 80.69 million from SAR 101.5 million, to be followed by a capital hike to SAR 161.39 million through a rights issue, according to data compiled by Argaam.
Shams emphasized that there will be no impact of the capital cut on its financial obligations, operations or performance.
The capital cut is pending approvals of the general assembly and related regulatory approvals.
Both processes, the capital cut and capital hike, are pending approval from the general assembly and regulator.
The company added that Aljazira Capital will continue to advise on its prospective capital cut and capital hike.
Shareholders will be notified when the capital reduction file is submitted to the Capital Market Authority (CMA) for approval.
With regard to raising the company's capital, it indicated that it is still working to find and evaluate appropriate investment opportunities.
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