City Cement General approves a 26% capital reduction

The extraordinary general assembly of Al Madina Cement Company, in its meeting held on Tuesday, approved the recommendation of the Board of Directors to reduce the company's capital by 26%.

The company said in a statement to the Saudi market (Tadawul) today, Wednesday, that the General Assembly approved reducing the capital from 1.892 billion riyals to 1.4 billion riyals, with a reduction of 492 million riyals .

She stated that the number of issued shares before the reduction was 189.2 million shares, and after the reduction, 140 million shares, while the rate of reduction was one share for every 3.85 shares.

and she explained that the proposed way to reduce the capital is to cancel 49.2 million shares of the company’s shares, and to compensate the eligible shareholders with the nominal value of (10) riyals per canceled share. / p>

and the company stated that the reason for reducing the capital is to exceed it, explaining that the reduction process will not have a material impact on the obligations, operations or financial or operational performance of the company, while Management expects the reduction to have a positive impact on the ratios of performance and profitability indicators.

The company intends to fund the reduction process from its own sources; Nevertheless, the company has signed Islamic banking facilities agreements with the Saudi British Bank (SABB) in the amount of 50 million riyals and the same with Riyad Bank, available for the purpose of financing the process of reducing the company's capital only.

The company will not use the amounts of these facilities unless it is unable to finance the entire reduction process from its own sources and in anticipation of any emergency event that may affect the payment process, bearing in mind that these The facilities are non-binding, and no commission, administrative fee, or engagement commission shall be charged in the event that the facilities are not used.

and in the event that the company's shareholders agree at the extraordinary general assembly meeting to reduce the company's capital, the reduction decision will be enforceable on all the shareholders of the company registered in the company's shareholders register with Markaz Company Deposit of securities (Depository Center) at the end of the second trading day following the end of the creditors ’objection period.

(Amazon Fun Knowledge)