Amiantit BOD Recommends Decreasing Company Capital

Saudi Arabian Amiantit Company announced on Tuesday the decision of the Board of Directors in its meeting yesterday, 22.11.2021, to recommend to the Extraordinary General Assembly to decrease the Company’s Capital and subsequently increase the Capital.

The Company indicated that its capital before decrease is SR320 million, while capital after decrease is SR99 million, with percentage of capital decrease 69.06%.

The reason for the capital decrease is restructuring the Company’s capital to write off the accumulated losses.

The method of capital decrease           is cancelling 22,100,000 shares of the Company’s shares, (1) share will be approximately decreased for every (1.447) shares.

The Company confirmed that there is no impact of decreasing the Company’s capital on its financial obligations.

The date of decrease will be at the end of the second trading day after Extraordinary General Assembly meeting in which decrease was resolved.

The recommendation to decrease the company’s capital is subject to the approval of the related official authorities and the approval of the Extraordinary General Assembly

Amiantit indicated that Wasatah Capital has been appointed as the financial advisor on the capital decrease and capital increase. Also, an announcement will be made upon submitting the Company’s capital decrease application file to Capital Market Authority for approval.

The Board of Directors has recommended to the Extraordinary General Assembly, and after finalizing the process of capital decrease, to increase the capital by offering rights issue with value of SAR221 million.

The Extraordinary General Assembly approval on the process of increasing the Company’s capital by offering rights issue is conditional on the Company’s Extraordinary General Assembly approval of the proposed capital decrease.

The Company aims essentially by increasing its capital to support the Company’s working capital.

The eligibility of subscription will be for the Shareholders holding the shares on the date of the Extraordinary General Assembly meeting in which capital increase through the issuance of rights issue was resolved and whose names appear in the register of the Issuer’s shareholders at the Depository Center at the end of the second trading day following the date of the General Assembly’s meeting.

The Company said that “We would also like to point out that process of capital increase is subject to the approval of the related official authorities and the Extraordinary General Assembly”.