JEDDAH: Saudi Arabian Amiantit has announced its plans to reduce its capital against total accumulated losses and the restructuring parts of the Group’s companies.
Saudi Arabian Amiantit Company has announced the closure of two of its companies including Ameron Saudi Arabia, Ltd –Dammam and Saudi Arabia Concrete Products Ltd (SACOP)-Jeddah.
The closure of Ameron Saudi Arabia, Ltd –Dammam will result in a total estimated loss of SAR 8.6 million, while closure of Saudi Arabia Concrete Products Ltd (SACOP)-Jeddah will result in a total estimated loss of SAR 5.4 million.
The management clarified that the losses mentioned as a result of the closures above are already included in the announced accumulated losses in its announcement dated 20-02-2019 which totaled SAR 514.367 million.
Saudi Arabian Amiantit has also announced to decrease the company’s capital. The capital reduction will be done through the reduction of 1 share for each 2.25 shares.
There is no significant impact of the capital reduction on the Company’s liabilities nor operations. While management expects the reduction will have a positive impact on the Group’s financial performance as a result of absorption of accumulated losses after restructuring part of the financially troubled companies in the Group.