Skip to content Skip to Search
Skip navigation

Tihama shareholders to vote on rescue for Saudi media group

A WH Smith shop. Tihama operates its units at Riyadh and Jeddah airports WH Smith
A WH Smith shop. Tihama operates its units at Riyadh and Jeddah airports
  • Meeting set for December 18
  • Group runs WH Smith shops
  • Tihama has reported heavy losses

Shareholders in the loss-making media group that operates WH Smith shops in Saudi Arabia are to vote on a rescue plan next month.

Tihama Advertising and Public Relations Company said its “financial reorganisation proposal under the Saudi bankruptcy rules” would be put to shareholders on December 18.

The meeting will be overseen by Osama Al Sudais, a reorganisation secretary appointed by the Commercial Court in Riyadh, and follows the court’s acceptance of the plan, according to a filing to the Saudi Stock Exchange.  

In a financial restructuring document seen by AGBI, Tihama said more than 60 claims from its creditors – including suppliers, banks and employees – had been approved. These claims total nearly SAR59 million ($15.7 million). 

Tihama has advertising, entertainment and publishing businesses, as well as the WH Smith units at airports in Riyadh, Jeddah and the UAE. Its accumulated losses stood at SAR119.8 million on June 30, which represents 30 percent of its capital. 

Shareholders approved the removal of the board earlier this month. Seven new members were appointed. 

Tihama has launched a lawsuit against some of the former board members, it said in a previous Tadawul filing.  

The company also told the exchange earlier this month that its results for the six months to September 30 would not be published on time.

In its latest quarterly results, for the three months to June 30, net losses had widened to SAR10.6 million, from losses of SAR7.1 million a year earlier.

The restructuring document states that the Covid pandemic played a big part in Tihama’s troubles, leading to a “remarkable decrease” in sales and stores managed by the company, as well as a drop in its investment proceeds.

“Given the liquidity constraints faced by the company, the majority of the company’s contracts were not renewed and therefore the number of contracts signed decreased significantly between 2022 and 2023,” it added.

Tihama said it had increased its capital to help pay creditors and provide cash for expansion.

“The company believes in its ability to implement the financial plan and fulfil its financial obligations, thus guaranteeing the rights of its creditors continuing as a going concern,” it said.

The proposal includes expanding its network of WH Smith shops at airports, developing its business distributing educational materials to Saudi schools, investing in a new media production company and increasing its number of billboard advertising sites.

Latest articles

Alstom's upgraded passenger transit system will help reduce emissions at King Abdulaziz International Airport

Alstom to upgrade driverless transit system at Jeddah airport

French train maker Alstom will upgrade the automated and driverless passenger transit system at King Abdulaziz International Airport, as the Jeddah airport aims to receive 114 million passengers by 2030. As part of the contract, Alstom will design, engineer, supply, integrate, test and commission a complete system upgrade of its Innovia automated people mover (APM) at the airport’s terminal […]

The Al Dhafra solar PV project. Ewec plans to increase Abu Dhabi’s solar production capacity to 7.6 GW by 2030

Abu Dhabi to generate 50% power from green sources by 2030 

Abu Dhabi plans to generate more than half of its electricity from renewable and clean energy by 2030, a senior Emirates Water and Electricity Company (Ewec) official has said. The state-owned entity is increasing the emirate’s solar energy production plan to 7.6 gigawatts (GW) by 2030, the UAE state-run Wam news agency reported, quoting CEO Othman Juma […]

An Acwa Power solar facility in Saudi Arabia. The Bank Of China loan will help finance its solar projects in Uzbekistan

Acwa Power takes China bank loan in first for Saudi Arabia

Saudi energy major Acwa Power has secured an $80 million loan from the Bank of China as the appeal of the Chinese Renminbi as a trade currency gains traction in the GCC. Acwa Power, the world’s largest private water desalination company and a first mover into green hydrogen, has received the equity bridge loan to […]

Solar power panel

Cost of Xlinks Morocco-UK project balloons by a third

The cost of an ambitious project to deliver green energy from the south of Morocco to power homes in the UK has ballooned by more than a third to $30 billion. Xlinks First is behind the Morocco-UK renewables project, which would construct the world’s longest high-voltage direct current (HVDC) subsea power cable between the North […]