CMA nods to Aslak’s 20% capital cut file

Logo of United Wire Factories Co. (Aslak)

The Capital Market Authority (CMA) approved United Wire Factories Co.’s (Aslak) request to reduce capital from SAR 351 million to SAR 280.8 million, reducing the number of shares from 35.1 million to 28.08 million.

The CMA's decision is conditional on the company's extraordinary general assembly (EGM) approval and completion of the necessary procedures in relation to the applicable regulations, the market regulator said in a statement.

Aslak will publish a disclosure document to its shareholders related to the proposed method of capital reduction and its expected impact within sufficient time prior to the EGM to enable their voting on the planned capital decrease.

According to data compiled by Argaam, Aslak’s board of directors recommended, in November 2022, a 20% capital cut from SAR 351 million to SAR 280.8 million on having a capital surplus.