Yanbu Cement board recommends 36.5% capital cut

Yanbu Cement Co. building

Yanbu Cement Co.’s board of directors on Jan. 30, 2021, recommended 36.5% capital cut to SAR 1 billion from SAR 1.575 billion through writing off shares, as the company had excess capital, the cement producer said in a statement to Tadawul.

The process will have no material impact on liabilities, financial, operational, or organizational performance, the company said, expecting the capital cut to bolster its capital structure, profitability and performance indicators.

The capital reduction is subject to shareholders and regulatory authorities’ approvals.

Yanbu Cement will hire a financial adviser for the capital cut and submit the related request to the Capital Market Authority (CMA) for approval later on.