Riyadh – Mubasher: City Cement Company said that the creditor objection period to reduce the company’s capital by 26% to SAR 1.4 billion from SAR 1.89 billion has expired on 25 October 2020 and that no objection was received from the creditors during that period.

Accordingly, the firm’s decision to cut the capital through the cancellation of 49.2 million ordinary shares came into effect, according to a bourse statement on Monday.

The new number of issued shares will amount to 140 million, compared to189.2 million.

On 26 August, the extraordinary general meeting (EGM) of City Cement approved the 26% capital cut.

The Tadawul-listed firm pointed out that the cut will neither have any material impact on its commitments and operations nor its financial or operational performance. However, the board expects this reduction to have a positive effect on the firm’s performance indicators and profitability.