Herfy shareholders to vote on dividend, capital hike May 22

Herfy Food Services Co.’s shareholders will vote on a proposal to pay 15 percent cash dividend (at SAR 1.5 per share) at its extraordinary general assembly on May 22.

Shareholders will vote on a board proposal to raise the company’s capital by 40 percent to SAR 646.8 million from SAR 462 million through distributing two bonus shares for every five shares held, Herfy said in a statement to Tadawul on Tuesday.

The company will use SAR 64.8 million from its retained earnings and SAR 120 million from statutory reserves to fund the capital increase, which will help finance current and future expansions.

Shareholders will also decide whether to pay SAR 1.8 million in bonuses to board members for fiscal year 2016.