Saudi Alhokair Group's board recommends 38% capital cut

The capital will be reduced by cancelling 20.7mln shares

  
Saudi men inspect a screen showing stock prices at ANB Bank in Riyadh, Saudi Arabia September 16, 2019.

Saudi men inspect a screen showing stock prices at ANB Bank in Riyadh, Saudi Arabia September 16, 2019.

REUTERS/Ahmed Yosri

Riyadh –  The board of Abdulmohsen Alhokair Group for Tourism and Development Company has recommended to decrease the company's capital by 37.64% to SAR 343 million from SAR 550 million.

The capital will be reduced by cancelling 20.7 million shares, equivalent to one share for every 2.657 shares, according to the company's disclosure to the Saudi Stock Exchange (Tadawul) on Wednesday.

This decision aims to restructure the company's capital to write off SAR 207 million accumulated losses as of 30 September 2020.

The capital reduction will not affect the company's financial obligations.

Meanwhile, the board has recommended to raise the company's capital through a rights issue amounting to SAR 307 million after completing the capital reduction process.

Source: Mubasher

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