Saudi Cable Board of Directors recommended Reduction the Capital

02/05/2017 15:58 AST

With reference to the previous announcement of the Saudi Cable Company dated 22/07/1438 H (corresponding to 19 April 2017) on the official website of the Saudi Arabian Stock Exchange (Tadawul) regarding the recommendation by the board of directors of the Company to reduce the capital of the Company. and after filing the Capital reduction file to the Capital Market Authority on 20/04/2017, the Company received some comments related to the Capital reduction file, among which was that the Company has not complied with the requirements of the Listing rules stipulating that the Company shall announce for its audited annual financial statements for the year 2016 within the specified period, therefore, the Company has relied on its latest external auditor reviewed financial results for the 3rd quarter, 2016 in compliance with article 150 of the Companies law.the Company would like to inform its shareholders that board of directors of the Company has passed another resolution dated 05/08/1438 H (corresponding to 01 May 2017) by circulation recommending the extraordinary general assembly of the current shareholders of the Company (the Extraordinary Assembly) to reduce the capital of the Company based on the following revised figures:

1.reduce the capital of the Company from SAR 760,000,000 to SAR 404,114,000
2.reduction ratio: 46.83%
3.the number of shares before the Reduction: 76,000,000 shares, the number of shares after the Reduction: 40,411,400 shares
4.reduce one share per 2.14 ordinary shares
5.reason of the Reduction: to address the Qualification and eliminate the current cumulative losses of the Company
6.method of the Reduction: cancellation of 35,588,600 shares (ordinary shares)
7.effect of the Reduction on the Company current liabilities: the Reduction will not have any significant impact on the creditors/ lenders of the Company.
Noting that the company has already announced for the appointment of financial advisor on 23/07/1438 H corresponding to 20/04/2017. Provided that the Reduction is subject to obtaining approvals from the competent authorities and the Extraordinary Assembly as described above.
An announcement regarding the resubmission of the Reduction request file to the Capital Market Authority based on the above revised figures will be made later.
If the Extraordinary Assembly issues a resolution approving the Reduction, such resolution will be enforceable on all current shareholders of the Company registered with the Company records in the Company register at the financial Securities Depository Centre (Tadawul) at the end of the second trading day on which such Extraordinary Assembly resolution was issued.

Tadawul