The CMA has issued its resolution approving Emaar The Economic City Company's request to increase its capital through converting debt amounted SAR 4,118,221,464.63. This approval is conditional on the Company's extraordinary general assembly approval and completion of the necessary procedures in relation to the applicable regulations.
A shareholders' circular will be published clarifying reasons for the capital increase and its objectives within sufficient time prior to the Extraordinary General Assembly Meeting to enable shareholders to vote on the capital increase through debt conversion. If the approval of the extraordinary general assembly is not obtained within six months from the CMA's approval date, the CMA's approval shall be deemed cancelled.
A voting decision without reading the shareholders' circular carefully or fully reviewing its content may involve high risk. Therefore, shareholders should carefully read the circular in order to make a well-informed decision when voting on the capital increase resolution for the said purpose. If the shareholders' circular proves difficult to understand, it is recommended to consult with an authorized financial advisor.
The CMA's approval of a particular company's application to increase its capital should never be viewed as an endorsement of the feasibility of the capital increase for the purposes of a transaction. The CMA's approval of a company's application to increase its capital merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met.