Saudi Tabuk Agricultural Development approves 46% capital cut

Around 20.8 million shares will be cancelled

  
A farmer carries a box containing freshly harvested corns on a farm in Al-Kharj, 77 km (48 miles) south of Riyadh December 20, 2013. REUTERS/Faisal Al Nasser Image used for illustrative purpose.

A farmer carries a box containing freshly harvested corns on a farm in Al-Kharj, 77 km (48 miles) south of Riyadh December 20, 2013. REUTERS/Faisal Al Nasser Image used for illustrative purpose.

REUTERS/Faisal Al Nasser

Riyadh – The ordinary general meeting (OGM) of Tabuk Agricultural Development Company has approved the board’s proposed capital cut by 46.27% to amortise accumulated losses of SAR 208.23 million.

The Saudi firm’s capital will be reduced to SAR 241.77 million from SAR 450 million, while the total number of shares will reach 24.17 million compared to a current 45 million.

Around 20.8 million shares will be cancelled, this equals 0.46 share for every share, according to a bourse disclosure on Thursday.

The capital reduction will not have any material impact on the company’s financial commitments.

Moreover, the decision shall be effective on the company’s equity holders at the next extraordinary general meeting (EGM) and those registered on records at the Securities Depository Center Company (Edaa) at the end of the second business day following the EGM’s assembly.

The company’s stock fluctuation limit will be set based on a price of SAR 14.90, the company highlighted in a separate statement, as trading on the stock will be suspended for two days effective as of Thursday 19 Mach, until Sunday, 22 March.

Source: Mubasher

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