Aslak BOD recommends reducing capital to SR280.8 mln to overload it

United Wire Factories Co. announced on Thursday Board’s recommendation to decrease the company’s capital. The capital before decrease is 351,000,000. The percentage of Capital decrease is 20 %.
It explained that the number of shares before the reduction was SR351 million, and after the reduction it will become 280.8 million shares, by cancelling 20% of the number of shares and compensating the shareholders for that.
The reduction process will be financed by using the company’s surplus cash balances, with all details announced through circulating shareholders in accordance with the procedures, and the Board of Directors believes that the reduction will have a positive impact through improving performance indicators.
The end of the second trading day following the end of the creditors’ objection period.
The process of capital reducing and the number of shares is conditional on the approval of the official authorities and the extraordinary general assembly
The appointment of the financial advisor for the capital reduction process will be announced later, as well as the announcement of submitting the capital reduction request file to the Capital Market Authority for approval, in addition to any other material developments.