Mubasher: The board members of Danah Al Safat Foodstuff have recommended a capital reduction of KWD 1.24 million.

Danah Al Safat’s board has also submitted its proposal to the Capital Markets Authority (CMA) to offset the accumulated losses as well as accepting the resignation of the CEO with the last working day 30 June 2019.

The board has recommended a capital cut through distributing bonus shares; Danah Al Safat will cancel 10 million shares and distribute them on the shareholders at a nominal value of 100 fils each, according to a bourse disclosure on Tuesday.

As in Danah Al Safat’s budget on 31 December 2018, the accumulated losses stood at nearly KWD 239,500; therefore, the company proposed reducing the capital by about KWD 239,500 through the cancellation of 2.39 million shares to offset its losses.

Following the CMA’s approval, the capital will become KWD 10.93 million distributed on 109.28 million shares at a par value of 100 fils each.