The Savola Group has announced that the company’s board of directors agreed Monday, May 26, 2003 to distribute to shareholders a total amount of 3,428,572 free shares, which is equivalent to one share for each 3.67 owned share. This will increase the amount of company’s shares to 16 million shares. Also, the company’s capital will be raised to 800 million Saudi riyals ($213.3 million) after transferring SR171,428,600 million from reserves.
The company’s board of directors also agreed to the suggested proposal of distributing exceptional dividends in the amount of SR12 per each free share after the approval of the general assembly.
Exceptional dividends in the total amount of SR 41.142 million will be distributed after the approval of the Ministry of Commerce, noting that exceptional dividends will be distributed from accumulated funds, which represents the same percentage for the distributed dividends for the year 2002 without affecting the company’s financial results for the year 2003.
It is forecast that the company’s profits for the year 2003 will rise more than 30 percent compared with the year 2002, and that the group will maintain at least the same distributed profit percentage with incremental potentials even though the number of shares has been increased.
The dividend per share for the year 2003 is expected to be equal, if not more, than it was before issuing the free shares.
The Savola Group emphasized that the main sectors have a powerful and solid financial base that is enabling the Group to achieve its ‘555’ goal of five billion SR turnover and SR 500 million in profits by 2005.
Established in 1979 with an initial capital of SR90 million, the Savola Group is a food processing and trading company focusing on edible oils and fats, sugar and food retailing. It operates manufacturing plants in Jeddah (Saudi Arabia), Egypt and Jordan, with investments also in Pakistan, Algeria and Sudan.
Savola's product range includes brands such as Afia, Al-Arabi, Lisa, Karam, Shams, Nakheel and Hala. The joint stock group operates 46 stores in Saudi Arabia and claims to control 80 percent of the vegetarian oils market of the Kingdom. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
