Alhokair BOD amends recommendation to reduce capital to 51.5% to amortize 98.93% of accumulated losses

Abdulmohsen Alhokair Group for Tourism and Development announced on Wednesday that the Board of Directors decided by passing in its meeting held on Tuesday 30/08/2022 to amend the recommendation to the Extraordinary General Assembly to reduce the capital from SR650,000,000 to SR315,000,000 51.54%, in order to restructure the capital of the company’s money to amortize (98.93%) of the accumulated losses as on June 30, 2022.

The company said in a statement on Wednesday on Tadawul that the number of shares before the reduction: 65,000,000 shares, while the number of shares after the reduction: 31,500,000 shares.

Capital reduction method: Cancellation of 33,500,000 shares of the company’s shares, to extinguish 98.93% of the accumulated losses amounting to SR338,631,000 as on June 30, 2022, whereby (67) shares will be cancelled for every (130) shares of the issuing company’s shares.

Reason for capital reduction: Restructuring the company’s capital to amortize (98.93%) of the accumulated losses as on June 30- 2022.

This comes with reference to the announcement of Abdul Mohsen Al Hokair Tourism and Development Company on 13.06.2022 regarding the Board of Directors’ recommendation to the Extraordinary General Assembly to reduce the company’s capital from SR650,000,000 to SR350,000,000 at a reduction rate of 46.15% in order to restructure the company’s capital to amortize (98.79%) of the accumulated losses as on March 31- 2022.