Saudi Cable Company announces an update on a transaction of assets purchase; value of 200 million Saudi Riyal for the purpose of reselling them to finance the Company’s working capital.
The transaction that made with Al-Nawasi Gulf Trading Company on April 2021 for the purchase of “non-current assets” Cars value of 200 million Saudi Riyal for the purpose of reselling them in order to use the proceeds of the cash flows from it to finance the Company’s working capital. The transaction didn’t implemented due to the failure of Al-Nawasi Gulf Trading company to fulfill the requirements of the contract on the agreed dates and the subsequent time limits exhausted by the company, forcing the Saudi Cable Company to submit a request for the implementation of order for the advance payment, as a result of which the services of Al-Nawasi Gulf Trading Company were suspended. Saudi Cable Company currently seeks to initiate a legal claim before the Commercial Court approves winding of the contract with Al-Nawasi Gulf Trading Company and its claim for the amounts that it illegally obtained it, in addition to the penalty clause and other related claims.
Previous Announcement
Transaction of assets purchase; value of 200 million Saudi Riyal for the purpose of reselling them to finance the Company’s working capital.
Date of Previous Announcement on Tadawul’s Website
2021-05-05 Corresponding to 1442-09-23
Percentage of fulfilled achievement
N/A
Event’s Expected Completion Date
N/A
Reasons for Exceeding the Announced End Date
N/A
The costs associated with the event, and if they have changed or not with indication of the reasons.
Whereas, the contract with an amount of SR 200 million did not executed till now, the resulted cost which is an amount of SR 81,519,665 no longer exists either.
Impact of the Delay on the Company’s Financial Results
It is not possible to predict the effect, it will be announced later when it becomes really.
