Riyadh – Mubasher: Arabian Industrial Fibers Company (Ibn Rushd) invited Saudi Industrial Development Company (SIDC) to attend the extraordinary general meeting (EGM) on Sunday, 31 December.

Ibn Rushd is a subsidiary of the Saudi Basic Industries Corp (SABIC).

Based on SABIC’s recommendation, Ibn Rushd’s board of directors added items on the agenda of the coming EGM related to restructuring the firm’s capital, according to a statement on Tuesday to the Saudi Stock Exchange (Tadawul).

The meeting includes voting on converting the firm to a limited liability company, authorise the board to implement the conversion, and reduce the capital to SAR 2 billion, from SAR 8.51 billion.

Capital reduction aims to offset accumulated losses, in addition to using part of the company’s current reserve of SAR 43.8 million to offset losses.

SIDC owns 1.56% of Ibn Rushd’s capital at a value of SAR 132.9 million, and it has booked an impairment provision, making up 50% of the par value of its investment in Ibn Rushd.

SABIC owns 48% stake of Ibn Rushd.

In August, SABIC announced acquired 50% stake in the Saudi Petrochemical Company (Sadaf) at a value of $820 million, and it implemented the acquisition from Shell Chemicals Arabia LLC.