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Chemanol slashes capital 78% to wipe out losses, sues former board
Chemanol shareholders approved a 78% capital reduction to SAR 150 million to erase accumulated losses and voted to sue former board members over two acquisition deals flagged in a forensic investigation.
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Methanol Chemicals Company, known as Chemanol (Tadawul: 2002), will cut its share capital by 77.76% to SAR 150 million from SAR 674.5 million, after a second extraordinary general assembly meeting on Sunday reached quorum with 27.14% attendance.
The reduction cancels 52.45 million shares at a rate of 0.7776 ordinary share for each share held. The company said the move extinguishes 90.76% of accumulated losses. Shareholders on the register at the end of the second trading day after the meeting will see the reduction take effect.
Chemanol also approved transferring SAR 53.4 million from its statutory reserve to cover the remaining accumulated losses. The capital reduction will not affect the company's obligations or total equity, though fractional shares below four will be cancelled and compensated in cash, the company said.