Riyadh – Mubasher: The board of Al Hassan Ghazi Ibrahim Shaker Company (Shaker Group) has recommended a 25% capital reduction by cancelling one share for every four owned shares, according to a bourse disclosure on Sunday.
Shaker Group will cut the capital by SAR 157.5 million or 15.75 million shares to SAR 472.5 million distributed over 47.25 million shares, compared to SAR 630 million and 63 million shares prior to the decrease.
The company aims to restructure the capital through this cut to write off accumulated losses.
There won’t be impact of the capital cut on Shaker Group’s financial position.
Related official authorities and the extraordinary general meeting will still have to approve the board’s decision.
During the same meeting on 19 September, the board proposed a capital increase by offering rights issue shares at a total value of SAR 250 million.
Aljazira Capital will be the financial advisor for both the capital decrease and increase.