Logo of Savola Group
Savola Group shareholders approved the board’s recommendation to reduce capital by 73.54% from SAR 11.33 billion to SAR 3 billion during the extraordinary general meeting (EGM) held on Dec. 12, according to a statement to Tadawul.
|
Capital Reduction Details |
|
|
Capital |
SAR 11.33 bln |
|
Number of Shares |
1.13 bln |
|
New Capital |
SAR 3 bln |
|
Number of Shares |
300 mln |
|
Percentage of Reduction |
73.54% |
|
Reason |
Excess capital will be cut to facilitate in-kind distribution of Savola’s entire stake in Almarai Co. to eligible shareholders and optimize the company’s capital structure |
|
Date of Reduction |
The capital reduction will be effective on the EGM date to shareholders of record and those registered with Edaa by the close of the second trading day following the EGM |
|
Method |
Through cancelling 833.98 million shares, or 73.54% of Savola share capital, as eligible shareholders will be granted a number of Almarai shares at a fair value equal to the nominal value of the cancelled shares after adjusting the fractional shares, if any. Almarai shares are determined based on the market value of these shares in Tadawul on the actual record date of distribution.
|
Savola announced that its shareholders also approved the board's recommendation to distribute the company’s entire stake in Almarai as an in-kind dividend to eligible shareholders. This distribution comprises 345.22 million ordinary shares, representing 34.52% of Almarai’s capital.
This is considered a significant deal subject to shareholders’ approval under the Capital Market Authority’s (CMA) Rules for the Offering of Securities and Continuing Obligations, with the following details:
- Shares in Almarai worth SAR 8.33 billion will be distributed (the exact number of shares will be determined on the actual record date). This will represent compensation resulting from the capital reduction of Savola. The remaining shares in Almarai owned by Savola will be distributed through retained earnings as in-kind dividends.
- The distribution will be carried out on a pro rata basis and the ratio will be calculated through dividing Savola's 345.22 million ordinary shares in Almarai by Savola’s total outstanding shares of 1.13 billion. As a result, shareholders will receive 0.3044 Almarai shares for each Savola share owned.
- Shareholders owning Savola shares at the end of trading on the EGM day will be eligible for dividends.
- The Compensation (Almarai shares) will be deposited to eligible shareholders within seven working days from the EGM date.
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}