Saudi Roots wins approval for capital hike
Riyadh, June 23, 2013
Saudi-based Roots Group, one of the biggest commercial groups in the region, said it has won approval from the investors to boost its capital from SR500 million to SR600 million ($133.2 million to $160 million).
A key vendor of construction materials and equipment in the Middle East, Roots Group Arabia has a major presence presence in Saudi Arabia, Egypt, the UAE, Qatar, Syria, Lebanon, Malaysia, China, and the UK. The company recently opened new branches in Jordan and Nigeria.
Roots Group said the General Assembly had unanimously approved the capital increase by issuing a bonus share for every five existing shares owned by the shareholders who are registered in the group’s registry at the closing of trading on the day of the extraordinary general assembly’s meeting.
Commenting on the decision, deputy CEO Samir Al Shubaily said, "The increase in capital will be covered by the company’s retained earnings. It is a strategic move and in line with the Group’s commitment to the long-term development."
According to him, the gGroup is looking for a comprehensive and sustainable development enabling it to upgrade the standards and establish a highly evident presence in the Gulf and Middle East to better deliver quality services in the coming years.
“We are witnessing rapid growth and expansion towards new markets in the region and are functioning at a steady pace. This is to fulfill the Group’s vision to be the pioneer in meeting the increasing demand of building materials and equipment required in the construction of medium and mega projects in Saudi Arabia and the GCC,” he added.-TradeArabia News Service