Saudi Cable Co. Announces an update on Board’s recommendation on Company’s capital increase through offering of rights issue.
|Introduction||Saudi Cable Company announces that the Board of Directors has decided at its meeting, held on Tuesday, 19/11/1442H, corresponding to 29/06/2021, to recommend to the Extraordinary General Assembly to reduce the Company’s Capital and consequently, increasing it as per the details shown below:Date of Board’s Meeting: 19/11//1442H, corresponding to 29/06/2021.Capital before deduction: 360,614,060Capital after deduction: 262,311,060Percentage of capital deduction: 27.26%Number of shares before deduction: 36,061,406Number of shares after deduction: 26,231,106Reasons for capital deduction: Restructuring of the Company’s Capital to write-off the accumulated losses as of 31/03/2021, an amount of (98,303,000) Saudi Riyal.Method of capital deduction: Cancellation a number of 9,830,300 of Company’s shares, 1share shall be deducted per 3.6684 shares.Impact of Capital deduction on the obligations or the operations or Company’s financial or operational or organizational performance: The capital reduction will not have an effect on the Company obligations.Date of reduction: End of the second trading day following the Extraordinary General Assembly meeting that approved the capital deduction.Approvals: The Recommendation on Company’s Capital deduction shall be subject to the approval of the relevant Regulatory Bodies and the Extraordinary General Assembly.Appointment of Financial Adviser, and submitting application for Capital deduction to Capital Market Authority (CMA). The Board of Directors has decided within the same Meeting to appoint FALCOM Financial Services as a Financial Adviser for the transaction of Capital deduction, and Financial Adviser and Subscription Manager for the transaction of capital increase through offering of rights issues.It will be announced when submitting the application for capital deduction and the request for the increase of Company’s capital through rights issue to Capital Market Authority for approval.|
|Previous Announcement||Board’s recommendation on Company’s capital increase through offering of rights issue.|
|Date of Previous Announcement on Tadawul’s Website||2021-02-25 Corresponding to 1442-07-13|
|Percentage of fulfilled achievement||N/A|
|Event’s Expected Completion Date||N/A|
|Reasons for Exceeding the Announced End Date||N/A|
|The costs associated with the event, and if they have changed or not with indication of the reasons.||N/A|
|Impact of the Delay on the Company’s Financial Results||N/A|
|Additional Information||Further, the Company’s Board of Directors has recommended within the same meeting of the Extraordinary General Assembly, and after completing the transaction of Capital deduction by increasing Company’s capital through offering of rights issue, an amount of 500 million Saudi Riyal, as the following details:|
1. Company’s capital before the increase (262,311,060) Saudi Riyal, and the number of shares (26,231,106).
2. Offering a number of (50,000,000) shares with total value of (500,000,000), represents an increase in Company capital percentage of (190.61%), for the purpose of restructuring of the capital and flows of new funds to secure operational capital for the Company to increase its operational capacity and supports future activities.
3. Company’s Capital after increase shall be (762,311,060) Saudi Riyal, and the number of shares (76,231,106) shares.
4. Capital increase is subject to the Extraordinary General Assembly approval of the deduction of the above mentioned capital.
5. Eligibility for subscription shall be for the Shareholders who are registered in the Shareholders’ register in the Securities Depository Center ( Edaa ) at the end of the second trading day following the Extraordinary General Assembly regarding capital deduction, and consequently increasing it through rights issue.Whilst, the Company’s Capital deduction and consequently increasing it through rights issue shall be subject to the approval of the related official Bodies and Company’s Shareholders Extraordinary General Assembly.