Following is the agenda:
1. Approve the recommendation of the board of directors to increase the capital of the company from SR400 million to SR600 million, an increase of 50 percent by awarding one bonus share for each two existing shares which increases the shares of the company from 40 million to 60 million shares, and the capital increase (SR200 million) will be met as follows:
— An amount of SR77,471,000 to be transferred from the statutory reserve, as in the financial statements for the nine months ended 30/09/2011;
— An amount of SR122,529,000 to be transferred from the retained earnings, as in the financial statements for the nine months ended 30/09/2011.
2.Approve the amendment of Article No. 7 of company bylaws regarding the company’s capital to cope up with the capital increase as follows:
The capital of the company has been fixed at SR600,000,000 divided into 60,000,000 shares of equal value, with the par value of SR 10 per share; all of which shall be ordinary nominal shares representing the company’s capital paid at the time of conversion.
The bonus shares, if approved, will be awarded for the shareholders registered in the company’s books with Tadawul by the end of the trading date of the EGAM.
In line with the Article No. 26 of the company bylaws, the EGAM will be valid only if attended by shareholders representing at least one-half of the capital, in addition that the Article No. 19 of the company bylaws includes that any shareholder holding at least 20 shares, will have the right to attend the extraordinary general assembly meeting as well.
For the shareholders who cannot attend the EGAM, they may appoint another shareholder on their behalf by filling up a proxy form which must be ratified by either the chamber of commerce or any of banks or from the proxy’s employer, then sending it to the company’s headquarter located on Olaya St. Riyadh, at least 3 days before the extraordinary general assembly meeting.
Jarir company says it has obtained the approval for increasing the capital of the company from the Capital Market Authority and the Ministry of Commerce.
In a recent Reuters interview, company Chairman Muhammad Al-Agil said the firm would hold off expansion plans in Egypt over the next two years to focus on a growing domestic regional market.
Jarir plans to spend over SR300 million to open up to 9 stores in Gulf countries by 2013, said Al-Agil at the Reuters Middle East Investment Summit in Riyadh.
“The growth will continue to be generated from Saudi and the rest of the GCC ... (That) market is huge, but we will not exclude Egypt ... Egypt is still in the plan but not for the coming two years.”
In 2009, Agil said they would consider expansion in North Africa after 2012, with Egypt a primary target.
