| Element List | Explanation |
|---|---|
| Introduction | With reference to Emaar, The Economic City’s (the “Company”) announcement made on 05 Rabi AlAwaal 1446H (corresponding to 08 September 2024G) on the Saudi Exchange’s website regarding the recommendation of the board of directors to decrease the Company’s capital from SAR 11,333,333,340 to SAR 5,702,171,690 through cancelling 563,116,165 shares of the Company’s shares, by cancelling (0.4969) share for every one (1) share owned, and representing 49.69% reduction in the capital, the Company announces the issuance of the board of directors’ circular resolution dated 23 Rabi AlThani 1446H (corresponding to 26 October 2024G) to amend the aforementioned recommendation as explained below. |
| Previous Announcement | Emaar, The Economic City Announcement of the Recommendation of the Board of Directors to Reduce the Capital of the Company |
| Date of Previous Announcement on Saudi Exchange’s Website | 2024-09-08 Corresponding to 1446-03-05 |
| Hyperlink to the Previous Announcement on the Saudi Exchange Website | Click Here |
| Latest Developments Of The Announced Event | The amendment of the previous Board’s recommendation to be as follows: |
Capital before reduction: SAR 11,333,333,340
Capital after reduction: SAR 5,232,599,090
Capital reduction percentage: % 53.83
Number of shares before reduction: 1,133,333,334 shares.
Number of shares after reduction: 523,259,909 shares.
Reason for capital reduction: to extinguish accumulated losses, which was SAR 6,100,734,257 as at 30 September 2024.
Method of capital reduction: Cancelling six hundred ten million seventy-three thousand four hundred twenty-five 610,073,425 shares of the Company’s shares, by cancelling (0.5383) share for every one (1) share owned.
The capital reduction will not have any significant impact on the liabilities, operations or performance of the Company. The date of the reduction will be the end of the second trading day after the extraordinary general assembly meeting in which the capital reduction is resolved. Reducing capital is conditional on the approval of the regulatory authorities and the Extraordinary General Assembly.
The Company previously announced the appointment of SNB Capital Company as the financial adviser in relation to the capital reduction, and Khoshaim & Associates as the legal adviser, and previously submitted the application for the decrease of the Company’s capital to the Capital Market Authority on 17 Rabi AlAwaal 1446H (corresponding to 20 September 2024G) and will amend such filing to reflect the amended recommendation.
The proposed capital decrease is one component of the Company’s capital optimisation plan recently announced on 05 Rabi AlAwaal 1446H (corresponding to 08 September 2024G), designed to stabilise the Company’s financial and operational positions and optimise its capital structure to enhance its ability to move forward with its growth plans.
The Company will announce material developments as they occur.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.