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Saudi Cable Company announces the signing of a working capital financing agreement with Rawafid Al-Mustaqbal Investment Company
| Element List | Explanation |
|---|---|
| Introduction | Saudi Cable Company announces the signing of a working capital financing agreement with Rawafid Al-Mustaqbal Investment Company amounting to 140,000,000 (one hundred and forty million) Saudi Riyals. This agreement includes cash financing and the purchase of raw materials to execute existing manufacturing orders. This agreement aims to help Saudi Cable Company (SCC) to increase its manufacturing capacity and maintain its relationship with one of its most important strategic customers. |
| Date of Announcement of the Award | 2023-09-30 Corresponding to 1445-03-15 |
| Contract Subject Matter | Signing a financing agreement |
| Date of Signing the Contract | 2023-11-15 Corresponding to 1445-05-01 |
| Contract Value | 140,000,000 (one hundred and forty million) Saudi Riyals. |
| Contract Details | 1. Rawafid Al-Mustaqbal Investment Company shall deposit 30,000,000 (thirty million) Saudi Riyals in cash into the account of Saudi Cable Company, before December 30, 2023. 2. Rawafid Al-Mustaqbal Investment Company provides Saudi Cable Company with purchase orders of raw materials (copper and aluminum) amounting to 110,000,000 (one hundred and ten million) Saudi Riyals, before November 15, 2023. Purchase orders are paid, and Saudi Cable Company does not bear any fees related to the provision of such materials. 3. This financing constitutes a loan of 140,000,000 (one hundred and forty million) Saudi Riyals for Saudi Cable Company. 4. Rawafid Al Mustaqbal Investment Company aims to capitalize this loan later in exchange for shares in Saudi Cable Company after obtaining regulatory approvals. This would enable Saudi Cable Company to efficiently manufacture strategic client orders and strengthen its position in bypassing the Financial Restructuring Procedure which will have a positive impact on the company's interest, reputation, and presence in the cable sector at the national level. |
| Contract Duration | The working capital financing agreement with Rawafid Al-Mustaqbal Investment Company will be valid until the supply is completed and the required approvals are obtained. |
| Financial Impact and the Relevant Period | It is expected that this agreement will have a positive financial impact on the company and support its continuity and presence in the market in general, and on the Financial Restructuring Proposal in particular, in the fourth quarter of 2024. |
| Related Parties | There are no related parties within the contract. |
| Additional Information | 1. This agreement has been approved by the Financial Restructuring Procedure Bankruptcy Trustee. 2. This agreement will not entail financial contributions from the shareholders. 3. Raw materials (copper and aluminum) will be supplied to Saudi Cable Company warehouses before November 30, 2023. 4. Rawafid Al-Mustaqbal Investment Company is committed to maintaining all technical, operational, manufacturing, and administrative information of Saudi Cable Company. |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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