Riyadh – Mubasher: The board of directors of City Cement Company recommended 26% capital reduction to SAR 1.4 billion from SAR 1.89 billion through share cancellation.
The capital cut will be financed through the company’s internal resources and loans, according to the firm’s filing to the Saudi Stock Exchange (Tadawul) on Tuesday.
The company noted that the action is expected to have a positive impact on its profitability and performance.
Accordingly, the company will appoint a financial adviser for the capital cut and submit the related request to the Capital Market Authority (CMA) for approval later on.
The decision will be implemented on the second day after the extraordinary general meeting (EGM).
Moreover, the capital cut is subject to shareholders and regulatory authorities’ approvals.