Al-Jouf Cement BOD Recommends Reducing Capital to SR1.08 bln

Al Jouf Cement Company announced on Monday that the Board of Directors decided on 3 April 2022 to recommend to the Extraordinary General Assembly to reduce the company’s capital and then increase it according to the following detail:

It added that the capital before decrease is 1,430,000,000. The capital after decrease is 1,087,000,000. The percentage of capital decrease is 24 %.The number of shares before decrease is 143000000. The number of shares after decrease is 108700000.

It also added that reasons for the capital decrease is restructuring the company’s capital to extinguish the accumulated losses, amounting to SR343 million.

Method of capital decrease is cancellation of 34,300,000 shares, 0.24 shares for every 1 share.

The recommendation to reduce the capital is conditional on obtaining the approval of the relevant official authorities and the extraordinary general assembly

An announcement will be made later when the financial advisor is appointed, as well as when the capital reduction request file is submitted to the Capital Market Authority.

The company’s board of directors also recommended, at the same meeting of the extraordinary general assembly, and after the completion of the capital reduction process, to increase the company’s capital through a rights issue of SR300 million, so that the capital after the increase becomes SR1,387,000,000 million, the details of which are as follows:

Capital before the increase: SR1,087,000,000

Capital after the increase: SR1,387,000,000

Capital increase percentage: 28%

Number of shares before the increase: 108,700,000 shares

Number of shares after the increase: 138,700,000 shares

The reason for the capital increase: to pay off the company’s obligations and support its financial position.

Method of capital increase: Add 30 million shares

The company concluded that the eligibility to subscribe will be to the shareholders who own the shares on the day of the extraordinary general assembly which decided to increase the capital by offering rights shares and whose names appear in the company’s shareholders register at the Depository Centre at the end of the second trading day following the date of the extraordinary general assembly which it will be scheduled at a later time.