Fitaihi Holding Group Company has agreed to the recommendation of the Board of Directors to reduce the company's capital from 550 million riyals to 275 million riyals.
According to Arab Net, the company added in a statement that the reduction rate is 50% of the company's capital at the rate of one share for every two shares.
The company attributed the reason for the reduction to an increase in the capital beyond the need, explaining that 27.5 million shares of the company's shares will be canceled and entitled shareholders will be compensated for this at a nominal value of 10 riyals for each canceled share, and the company will finance the reduction process from its own resources.
Regarding the impact of the capital reduction on the company's obligations, the statement indicated that there is no material impact of the capital reduction on the company's financial or operational obligations, operations, or performance.
The Board of Directors of Fitaihi Group expected that the reduction would have a positive impact on the performance and profitability indicators of the company.
According to the statement, the reduction decision will be effective on all shareholders of the company who are registered in the company's shareholders register with the Securities Depository Center Company (Depository Center), at the end of the second trading day following the end of the creditors' objection period.
Article (7) of the company’s articles of association related to the company’s capital will also be amended to comply with the capital reduction, as well as Article (8) of the company’s articles of association related to subscribing to shares, to coincide with the capital reduction.
Last month, the Fitaihi Group obtained the approval of the Saudi Capital Market Authority to reduce its capital last June.
In a separate statement, Fitaihi Group announced the start of the creditors' objection period in accordance with the provisions of Article (145) of the Companies Law.
And she continued: Any creditor of Fitaihi Group Holding Company has the right to object to the reduction process during the objection period by sending a registered letter to the company's head office.
The creditors' objection period will start from July 8, 2021 for a period of (60) days ending on September 5, 2021.
