Tihama board plans 43.5% capital cut to offset accumulated losses

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co.'s board of directors recommended today, March 25, a 43.49% capital cut from SAR 400 million to SAR 226.02 million, to restructure the company's capital to amortize accumulated losses.

The company said no material impact on its financial, operational, regulatory obligations, operations, or performance will result from the planned capital reduction, according to a Tadawul statement. The board's recommendation is still subject to approvals of the relevant official authorities and the deciding extraordinary general meeting (EGM).

An announcement will be made later when a financial advisor is appointed, as well as when the capital cut file is submitted to the Capital Market Authority (CMA) for approval, it added.