Savola deposits Almarai shares into shareholders' portfolios

Logo of Savola Group

Savola Group deposited Almarai Co.'s shares today, Dec. 19, into the portfolios of eligible shareholders as compensation for the cancellation of shares resulting from the capital reduction and the significant transaction.

In a statement to Tadawul, the company said that 0.3044 Almarai shares will be distributed for each Savola share held by eligible shareholders as of Dec. 1 (before the capital reduction).

Fractional shares of Savola, resulting from the capital reduction, and fractional shares of Almarai, resulting from the distribution-in-kind, will be combined into a single portfolio. These fractional shares will then be sold in the market at the prevailing price.

The proceeds from the sale will be distributed to eligible shareholders based on their holdings within 30 days from the date of the EGM’s approval of the capital reduction and the significant transaction, the statement added.

Savola’s EGM approved today a capital reduction by 73.54% from SAR 11.3 billion to SAR 3 billion, according to data available on Argaam.

Shareholders also endorsed the board of directors’ recommendation to distribute Savola’s entire stake in Almarai, amounting to 345.22 million ordinary shares, as in-kind dividends to eligible shareholders. The stake represents 34.52% of Almarai’s capital.

The distribution will include Almarai shares worth SAR 8.34 billion as compensation for the capital reduction. The remaining shares owned by Savola will be distributed as in-kind dividends from retained earnings.

Eligible shareholders will receive 0.3044 Almarai shares for each Savola share held, calculated based on Savola’s 345.22 million Almarai shares divided by its total of 1.13 billion shares.