CMA approves Shaker's capital reduction by 23.4% to SAR 482.3 mln

Logo of Al Hassan Ghazi Ibrahim Shaker Co.

The Capital Market Authority's (CMA) board approved today, March 16, Al Hassan Ghazi Ibrahim Shaker Co.’s (Shaker) request to reduce its capital from SAR 630 million (63 million shares) to SAR 482.3 million (48.2 million shares), the authority said in a statement.

This 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 EMG meeting to enable shareholders to vote on the capital decrease.

In September 2021, Shaker’s board of directors recommended a 25% capital cut from SAR 630 million to SAR 472.5 million through writing off 15.75 million shares (one share for every four shares), Argaam reported.

The board of directors recommended a capital increase through a SAR 250 million rights issue to be implemented following the capital reduction.

In November 2021, the company’s board amended the capital cut recommendation from 25% to 23.4%.