Saudi Cable wins approval for 37pc capital reduction
Saudi Cable Company, a global provider of turnkey solutions for energy and telecom networks, said it has won regulatory approval to reduce its share capital by 37.5 per cent from SR361 million (96.1 million) to SR262.3 million ($70 million).
After getting the nod from the kingdom's Capital Market Authority (CMA), it will now be presenting the capital reduction plan at the AGM for the shareholders' endorsement, said Saudi Cable Company in its filing to the Saudi bourse Tadawul.
In addition, the CMA has issued its resolution approving Saudi Cable’s request to increase its capital by way of rights issue valued at SR500 million, it stated.
This approval is conditional on the company’s extraordinary general assembly approval of the capital reduction and completion of the necessary procedures in relation to the applicable regulations.
The increase will be limited to the shareholders who are registered in the shareholders’ registry at the Security Depository Center as of the closing of the second trading day after the extraordinary general assembly meeting, which will be determined by the company’s board of directors at a later date, it said.
The offering price and the number of shares offered for subscription will be determined by Saudi Cable after market closing of the same day in which the extraordinary general assembly meeting is to be held, it added.