Emaar EC submits request for capital hike via debt conversion to CMA
The company's capital will increase to SAR 4.12 billion.
The debt conversion is subject to shareholders' approval. The company will call for the general assembly after obtaining the relevant regulatory approvals, the statement added.
Emaar EC noted that the Public Investment Fund (PIF) is a related party, as the sovereign wealth fund is one of the company's major shareholders.
The proposed debt conversion is one component of the company's capital optimization plan announced on Sept. 8, 2024, designed to stabilize the company's financial and operational positions. The proposal will optimize Emaar EC's capital structure to enhance its ability to move forward with its growth plans.
Any material developments will be disclosed in due course.
On March 8, Emaar EC's board of directors amended an earlier recommendation to increase capital by converting the debt owed to the PIF into new ordinary shares, according to data available with Argaam.
The board proposed increasing the amount of debt to be converted from SAR 3.97 billion to SAR 4.11 billion to include all interest, commissions and fees until Dec. 31, 2024.
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