Amiantit amends capital hike recommendation to SAR 346.5 mln through rights issue

Amiantit headquarters

Saudi Arabian Amiantit Co.’s board of directors raised its previous capital hike recommendation to SAR 346.5 million through a rights issue, the company said in a statement on Tadawul.

The board restudied the company’s financial position, and the best options available to achieve the best return for shareholders. In light of these changes, the board decided, on Jan. 29, to amend its previous recommendation to the extraordinary general assembly meeting (EGM) to keep the previously-recommended capital reduction unchanged, but amend the capital increase proposal.

The eligibility to subscribe will be to the shareholders of record on the EGM, which decided to increase the capital by offering rights shares and whose names appear in the company’s shareholders register at the Securities Depository Center (Edaa) at the end of the second trading day following the EGM date, which will be set later.

The capital cut recommendation is subject to the approval of the relevant regulatory authorities and the extraordinary general assembly, the statement added.

Wasatah Capital will remain the financial advisor of the capital cut and capital hike.

In November, Amiantit board of directors recommended 69.06% capital reduction from SAR 320 million to SAR 99 million. The board of directors also recommended capital increase through a SAR 221 million rights issue, following the completion of the capital cut process, Argaam earlier reported.

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