Tihama gets CMA nod on capital cut

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co.'s obtained the Capital Market Authority’s (CMA) approval on its request to reduce its capital from SAR 175 million to SAR 50 million, the authority said in a statement.

Accordingly, the number of shares will be reduced from 17.5 million shares to 5 million shares.

The approval is conditional on the company's extraordinary general assembly (EGM) approval and completion of the necessary procedures in relation to the applicable regulations.

The company will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected effect of such reduction within sufficient time prior to the EGM to enable shareholders to vote on the capital decrease.

The CMA's approval of a particular company's application to reduce its capital should never be viewed as an endorsement of the feasibility of the capital decrease. The approval merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met, the statement added.

Tihama filed a request, on Feb. 9, for the approval of the CMA on a capital reduction by SAR 125 million, according to data compiled by Argaam.