MEPCO BOD recommends capital increase to SR666.6 mln

The Board of Directors of Middle East Paper Co. (MEPCO) has recommended by circulation to the Extraordinary General Shareholders Assembly an increase in the capital of the Company by 33%. This increase will be done through issuing bonus shares by using SAR 166,666,660 of the Company’s existing retained income reserves by issuing 1 bonus share for every 3 shares held.

The company added that capital before increase is SR 500,000,000, while it will be SR 666.6 million after increase.

Number of Shares Granted per Exiting Share          is 1 bonus share for every 3 shares held.

The eligibility will be for the shareholders who own shares at the end of trading on the day of the Extraordinary General Assembly (which will be determined later) and who are registered in the company’s shareholders register with the Securities Depository Center Company (Depository Center) at the end of the second trading day following the date of the Extraordinary General Assembly meeting. ‎

The company stated that in the event of fractional shares, they will be collected in one portfolio for all shareholders and sold at the market price, then their value will be distributed to the shareholders entitled to the grant, each according to his share, within a period not exceeding 30 days from the date of determining the shares due to each shareholder.

It is worth noting that the capital increase is conditional on obtaining the approval of the official authorities and the extraordinary general assembly on the increase in the capital and the number of shares granted.