Riyadh - Mubasher: Saudi Cable Company’s board of directors recommended a 27.26% capital reduction to SAR 262.31 million from SAR 360.61 million.
The decision is aimed at restructuring the company’s capital and writing off the accumulated losses, which reached SAR 93.3 million as of 31 March, the company said in a bourse disclosure on Thursday.
A total of 9.83 million shares will be cancelled; one for every 3.67 shares will be deducted. The capital reduction will have no impact on the company’s obligations.
The capital cut will be carried out at the end of the second trading day following the extraordinary general meeting (EGM) date.
Moreover, the board also recommended a capital increase through a rights issue by offering 50 million shares worth SAR 500 million, increasing the capital by 190.61% to SAR 762.31 million.
The capital will be increased to secure operational capital for the company to increase its operational capacity and support future activities.
The decisions are subject to the approvals of the EGM as well as related official bodies.
