Tabreed gets nod to reduce capital

11 Dec 2010

(MENAFN) District cooling firm Tabreed, which is restructuring some $1.47 billion in debt, has received regulatory approval to slash its share capital by 80 percent, the company said.

The cancellation of shares through a capital reduction is a key component of Tabreed’s recapitalisation programme, it added.

Dubai-listed Tabreed, also known as the National Cooling Company, will reduce its outstanding shares to 243.4 million from 1.2 billion, cancelling 970 million. The new shares will start trading on Sunday. It is a five-for-one reverse stock split.

As Tabreed’s shares were trading at almost 60 percent below par value, its ability to raise new equity was limited, prompting it to reduce capital, the company added.

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