Riyadh – Mubasher: Saudi Printing and Packaging Company has issued a corrective disclosure regarding its Board of Directors' recommendation to reduce the company’s capital.
The update, released via the Saudi Exchange (Tadawul), clarifies specific figures related to the proposed capital restructuring aimed at extinguishing accumulated losses.
The company noted that the correction pertains to the final share count, the total capital post-reduction, and the specific value of the losses to be written off.
The correction follows a previous announcement regarding the board’s strategic move to restructure the company’s financial position.
According to the updated statement, the proposed capital after the reduction will be SAR 68.97 million, a slight adjustment from the previously stated figure of SAR 68.97 million.
Consequently, the total number of shares outstanding following the completion of the reduction process will be 6.89 million shares, rather than the 6.89 million shares initially reported.
The primary objective of this capital restructuring remains the elimination of accumulated losses. Saudi Printing clarified that the total amount of losses to be extinguished through this process is SAR 583.09 million. This figure replaces the earlier estimate of SAR 583.09.
By aligning the capital base with the company’s current financial standing, the board aims to improve the health of the balance sheet and provide a more sustainable foundation for future operations.
To achieve this reduction, the company intends to cancel 58.30 shares. The previous disclosure had erroneously cited the cancellation of 58.30 shares.
Despite these adjustments to the absolute numbers, the ratio of the reduction remains consistent. The company confirmed that the cancellation rate is approximately 0.8942 shares for every one share currently held by investors.
This administrative correction is essential for ensuring that all regulatory filings and shareholder communications accurately reflect the board’s recommendation.
The company emphasized that the error in the previous announcement was limited to these specific figures and that the broader intent of the restructuring—to address the company's financial obligations and accumulated deficits—remains unchanged.
The capital reduction process is subject to the approval of the relevant regulatory authorities, including the Capital Market Authority (CMA), as well as the approval of the company’s shareholders during an Extraordinary General Assembly meeting.
