Saudi SIIG cuts capital of two jointly managed companies

SIIG's share of that reduction is $188mln

  

Riyadh – Saudi Industrial Investment Group (SIIG) announced the capital reduction of its jointly managed companies, Saudi Chevron Phillips (SCP) and Jubail Chevron Phillips (JCP), which are 50% owned by SIIG.

The share capital of SCP has been reduced from SAR 655 million to SAR 244 million, while the share capital of JCP was cut from SAR 1.478 billion to SAR 484 million, according to a statement to the Saudi Stock Exchange (Tadawul).

SIIG's share of that reduction is SAR 703 million.

The two companies have sufficient financial reserves, no debt, and the ability to borrow, the statement noted, adding that this reduction will be returned to the joint ventures’ (JV) owners in stages, as per its financial capabilities during the coming years.

SIIG explained that an additional benefit of reducing capital will be the reduction in provisions for statutory reserve required and limiting the creation of any additional provisions for SCP and JCP.

Source: Mubasher

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