CMA approves Saudi Fisheries’ request to reduce capital by 83.25%

Logo of Saudi Fisheries Co. (Alasmak) 

The Capital Market Authority (CMA) approved Saudi Fisheries Co.’s (Alasmak) request to reduce its capital from SAR 400 million to SAR 66.99 million, resulting in a reduction of the number of shares from 40 million to 6.7 million.

This approval is conditional on the company's extraordinary general meeting (EGM) approval and the completion of the necessary procedures in accordance with applicable regulations, according to a statement to Tadawul.

Alasmak will publish a disclosure document to its shareholders regarding the proposed capital reduction method and its expected effect well in advance of the EGM to allow shareholders to vote on the matter, the statement added.

The CMA stressed that its approval of a company’s capital reduction request should not be interpreted as an endorsement of the feasibility of the reduction but simply confirms that the regulatory requirements set forth in the Capital Market Law and its Implementing Regulations have been met.

In January, Alasmak's board of directors recommended reducing the company’s capital by 52.89%, from SAR 400 million to SAR 188.44 million, to eliminate accumulated losses, data compiled by Argaam showed.

However, in October, the board decided to adjust the capital reduction to 83.25%, from SAR 400 million to SAR 66.99 million, as follows: