A branch of Fitaihi Holding
Fitaihi Holding Group’s shareholders approved a 50% capital cut to SAR 275 million from SAR 550 million, during the extraordinary general assembly meeting (EGM) held on July 7, the company said in a statement on Tadawul.
The capital cut will be through writing off 27.5 million shares, on having a capital surplus.
|
Key Figures of Capital Reduction |
|
|
Current Capital |
SAR 550 mln |
|
Number of Shares |
55 mln |
|
Reduction (%) |
50% (canceling 1 for every 2 outstanding shares) |
|
New Capital |
SAR 275 mln |
|
New Number of Shares |
27.5 mln |
|
Method |
Writing off 27.5 mln shares and paying shareholders compensation for the canceled shares at a nominal value of SAR 10/share. |
|
Reason |
Excess of capital above needs |
|
Date |
The reduction resolution will be effective for all the shareholders, registered in the shareholders’ register with the Securities Depository Center Co. (Edaa) at the end of the second trading day following the end of the creditors’ objection period. |
There is no material impact of the capital reduction on the company's financial or operating obligations, operations, or performance.
The management expects the reduction to positively impact the ratios of the company's performance and profitability indicators.
Fitaihi will finance the capital reduction process from its own resources.
In a separate bourse statement, the company announced the start of the creditors’ objection period in accordance with the provisions of Article (145) of the Companies Law.
Accordingly, any creditor of Fitaihi will have the right to object to the reduction process during the objection period.
The objection period starts today, July 8, for a period of 60 days until Sept. 5.
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