According to Arabia Net, the value of the capital reduction is 87.75 million riyals.
The company said in a statement to the Saudi market that the number of shares issued before the capital reduction will become 35.1 million shares after the reduction.
The ratio of shares to be canceled to the number of shares issued before the capital reduction will be 20%, the rate of one share reduction for every five shares.
The proposed method for reducing the capital will be to cancel the number of 8,775,000 shares of the company and to compensate the eligible shareholders for that at a nominal value of 10 riyals per share canceled.
Wires said that there is no material impact from the reduction of capital on the company's financial, operational, or organizational obligations, operations, or performance.
The discount will be funded by using the company's cash balances.
The reduction decision will be effective for all company shareholders who are registered in the company’s shareholders ’register with the Securities Depository Center (Depository Center) at the end of the second trading day following the end of the objection period The creditors.
In a separate statement, the company said that any creditor of the Federation of Wire Industries (Wires) has the right to object to the reduction by sending a registered letter to the head office. >
The creditors ’objection period starts from this day Thursday 25/11/1441 AH (corresponding to 07/16/2020 AD) and ends at the end of Sunday 01/25/ 1442 AH (corresponding to 09/13/20AD).
(Fun Knowledge of Knowledge)
