Tihama shareholders to vote on SAR 125 mln capital cut on Feb. 23

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co.'s shareholders will vote on reducing the company’s capital by 71.43% to SAR 50 million from SAR 175 million, during the extraordinary general assembly meeting (EGM) to be held on Feb. 23.

Accordingly, the number of shares will be reduced from 17.5 million to 5 million, the company said in a statement to Tadawul.

The company announced earlier today, Feb. 17, that the first and second EGMs, which was scheduled for Feb. 16, was not held due to lack of quorum.

The capital cut is aimed to restructure Tihama’s capital to amortize part of the accumulated losses. It will be carried out through cancelling 12.5 million shares at the end of the second trading day following the EGM date.

The e-voting on the agenda item will start from Feb. 14, until the time the general assembly meeting ends via Tadawulaty services.

On Feb. 10, Tihama obtained the approval of the Capital Market Authority (CMA) on its capital reduction request, according to data compiled by Argaam.