Riyadh, Saudi Arabia: The Extraordinary Shareholders’ General Assembly (“EGM”) of Al Hassan Ghazi Ibrahim Shaker Co. (“Shaker”, the “Group” or the “Company”, 1214 on the Saudi Exchange), held on 15 May 2022, approved the Board of Directors’ recommendation to reduce the Company’s capital, paving the way for the restructuring of the Company’s capital which will include a rights issue to raise SAR 249 million.

Following the approval, the Company’s capital will be reduced by 23.44% from SAR 630 million to SAR 482,334 million to extinguish its accumulated losses totaling SAR 147,666 million as at 30 September 2021.

The total number of shares will be reduced from 63,000,000 to 48,233,400 and will be carried out through the cancellation of a total of 14,766,600 shares or 2.34 shares for each 10 shares. The reduction will take place at the end of the second trading day following the EGM which is Tuesday 17 May 2022. The share price will be readjusted by Tadawul in an equal proportion to maintain the best interests of shareholders.

Shaker confirmed that the transaction will not have any impact on its financial obligations.

The recapitalization will strengthen the Company’s overall financial position and its balance sheet by reducing leverage and improving financial ratios, particularly the debt-to-equity ratio. The proceeds of the rights issue will also fuel the next growth phase including the expansion of the Home Appliances division, enhancements of the after-sales offering and ability to actively pursue opportunities resulting from the mega projects in the Kingdom.

Mohammed Ibrahim Abunayyan, Chief Executive Officer at Shaker, said:

“Shaker Group is committed to align the business objectives with the best interests of shareholders as demonstrated through their ongoing support for the Company’s future-looking strategic approach and goals. This important milestone in the capital restructuring process announced in 2021 paves the way for the SAR 249 million proposed rights issue which will provide us with the capital required to deliver on our growth strategy to increase the overall value for shareholders in the medium to long term.”

During today’s EGM, the shareholders also voted to elect new board members under the leadership of the Chairman Abdulelah Abunayyan, for a period of three years starting from 1443-10-24 which corresponds to 2022-05-25 and ending on 1446-11-26, corresponding to 2025-05-24.

The Company will now seek CMA’s approval of the capital increase which is the second part of the restructuring. This is expected in the coming weeks and will be followed by another EGM to put the resolution to our shareholders for voting. Further details will be provided in due course.


About Shaker

Shaker was founded in 1950 and was amongst the first in Saudi Arabia to introduce Air Conditioning & Home Appliances for Saudi consumers. Shaker is the importer and distributor of several leading international brands including Maytag, Ariston, Indesit, Midea, Bompani and Panasonic in Saudi Arabia, and the sole distributer of LG Air Conditioners in Saudi Arabia. ESCO, as a business unit of Shaker, provides Energy Solutions. Shaker has been a publicly listed company on the Saudi Exchange (Saudi Exchange) since 2010. Throughout the years, Shaker has positioned its name within the top Saudi companies, providing a range of integrated solutions in terms of Air Conditioners and Home Appliances in the Saudi market and the region.

For more information, visit: http://www.shaker.com.sa/

For investor and media enquiries
Noha Habib, Instinctif Partners