Cenomi Retail board proposes reducing capital, nominal value; sale of 24 non-core brands

Logo of Fawaz Abdulaziz Alhokair Co. (Cenomi Retail)

Fawaz Abdulaziz Alhokair Co.’s (Cenomi Retail) board of directors recommended today, March 31, reducing the company’s capital to SAR 100 million.

Cenomi Retail emphasized that there will be no major impact of the capital cut on its financial obligations.

Moreover, the board approved the sale of 24 non-core brands, including the Aleph brand and brands for the food group, based on the company’s strategic focus on core and important brands. These brands are expected to generate revenues of SAR 650 million, as their net assets are estimated at SAR 215 million. 

The board also proposed reducing the stock’s nominal value from SAR 10 to SAR 1 and mandated the executive committee to study capital restructuring after the closure of the planned sale, according to a statement to Tadawul.