National Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi-based utility company, today announced that it has received regulatory approval from the Ministry of the Economy and the Emirates Securities and Commodities Authority to reduce the Company’s share capital through the cancellation of 970,000,000 shares. The cancellation of shares will be on a pro-rata basis at a ratio of 5:1 – in effect a ‘reverse share-split’ – and applies to all Tabreed shareholders. Each shareholder will retain one share for every five original shares it holds. The remaining shares will be cancelled.
After the share cancellation this evening, Thursday 9th December 2010, the percentage share of Tabreed held by each shareholder will be the same as before – subject only to minor adjustments as fractional shares will not been issued. The new shares will start trading on Sunday 12th December 2010 on the Dubai Financial Market.
The cancellation of shares through a capital reduction is a key component of Tabreed’s recapitalization program that was approved by shareholders at the Company’s EGA on 30th May 2010. The capital reduction is intended to raise Tabreed’s share price above 1 AED and will enable Tabreed to raise new equity capital, when agreed, in the future.