‎“Aslak” GA agrees to reduce capital to SR280.8 million‎

Union Wire Factories Company (ASLAK) announced the results of the sixteenth extraordinary general assembly (first meeting), which was held on Wednesday. The items included approval of the Board of Directors’ recommendation to reduce the company’s capital. According to the following:

A- The capital before the reduction is 351 million riyals, and after the reduction it is 280.8 million riyals.

B- Reduction percentage: 20% of the company’s capital

C- The number of shares before the reduction is 35.1 million shares and after the reduction is 28 million shares

D- Reduction rate: one (1) share for every (5) shares

E- The reason for reducing the capital: Increasing the capital beyond the need

F- The method of reducing the capital: canceling the number of 7 million shares of the company’s shares, and compensating the shareholders who are entitled to that at a nominal value of (10) riyals for each canceled share.

G- The impact of the capital reduction on the company’s obligations: There is no significant impact of the capital reduction on the company’s financial or operational obligations, operations, or performance. The management expects that the reduction will have a positive impact on the ratios of performance and profitability indicators of the company

H- Financing the reduction process: The company will finance the reduction process from its own resources

I- Date of reduction: In the event that the company’s shareholders, in the Extraordinary General Assembly meeting, agree to reduce the company’s capital, the reduction decision will be effective for all the company’s shareholders registered in the company’s shareholder register with the Securities Depository Center Company (Depository Center) at the end of the second A trading day following the date of approval of the extraordinary general assembly to reduce the capital

J- Amending Article (7) of the Company’s Articles of Association, which is related to the company’s capital

K- Amending Article (8) of the Company’s Articles of Association related to subscription to shares

2- Approving the amendment of the company’s articles of association to comply with the new companies’ system, and rearranging the articles of the system and their numbering to comply with the proposed amendments.