|Announcement Detail||Filling and Packing Materials MFG. Co. (FIPCO) announces the Board of Directors’ resolutions by circulation on Tuesday dated 10/11/1444H corresponding to 30/05/2023G, which was related to the subsidiary (FPC), as follows: |
1- Approve to transform the legal entity of FPC – in which FIPCO owns 100% of its paid-up capital of SR 18 million – from a limited liability company to a joint stock company.
2- approve to Set an authorized capital of SR 100 million.
3- Approve to increase the Paid-up capital from SR 18 million to SR 70 million, which will be financed from using some of the current account balances between partners.
This transformation will support FPC objectives aiming to future expansions, also it will maintain its stability and sustainability, and will support the company’s financial position, which supports increasing export sales and improves the credit relationship with some large foreign clients in order to increase the company’s export share and in line with the needs of global markets.
This update will not have a material impact on the company’s financial results, while the financial impact of the capital structure will appear in the company’s financial statements as of the second or third quarter of the fiscal year 2023, depending on the company’s ability to complete the relevant regulatory procedures with governmental authorities.
FIPCO will continue to take all measures that contribute to enhancing the company’s ability to involve in new investments with the aim of activating the maximum benefit from the operational activities integration between FIPCO and its subsidiary, improving the efficiency, taking into account the rights of all stakeholders, and focusing on areas that have significant growth opportunities, which will contribute to enhancing the company’s profitability and maximizing the value of shareholders’ investments on the long run.
Any material developments in this regard will be announced in due course.