Paper Home shareholders OK 1-for-3 bonus issue to raise capital

Logo of Paper Home Co.

Shareholders of Paper Home Co. approved raising the company’s capital by way of a 33% bonus share distribution (1-for-3) through capitalizing SAR 5 million from the retained earnings account, during the extraordinary general meeting (EGM) held on Nov. 25.

Fractional shares, if any, will be compiled in one portfolio for shareholders and will be sold at market price, the company said in a statement to Tadawul.

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The proceeds will then be distributed to eligible shareholders, each according to their respective ownership, within a period not exceeding 30 days from the date of determining the new shares eligible for each shareholder.

On the other hand, shareholders also approved purchasing the 19,348-square meter (sqm) land plots on which the company is established, owned by Chairman Yacoub Al-Maghrabi, at fair value totaling SAR 23.22 million.

They also greenlit the sale of United Industrial Refreshments Co. to Al-Maghrabi at fair value totaling SAR 15.14 million, inclusive of VAT.

Additionally, the agricultural land in northern Al-Kharj, which is owned by the company and spans a total area of 67,420 sqm, will be sold to Al-Maghrabi at fair value, totaling SAR 7 million. Another agricultural land plot of 10,000 sqm will be also sold in Diriyah city at fair value for SAR 7.11 million.