Title: Press Release: Suspension of Trading of Sultan Center Food Company Shares at Boursa Kuwait Securities Exchange

Kuwait, September 19, 2024 – In pursuit of the continuous efforts of the Capital Markets Authority (CMA) to protect investors from any actions or behaviors that the securities may be exposed to that may violate Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws, and amendments thereto, and in implementation of the provisions of the mentioned Law and its Executive Bylaws, the CMA Board of Commissioners issued in its meeting No. (30) of 2024 held on 18/09/2024  a Resolution stipulating the following:

First: The shares of Sultan Center Food Company listed in Boursa Kuwait Securities Exchange are hereby suspended from trading according to Item No. (5) of Article (1-20) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and amendments thereto, which stipulate the following:

“The Authority may temporarily suspend trading in the Exchange, and suspend the trading of any Security listed in the Exchange in any of the following cases:
….
5. If the Auditor has given a material qualified opinion on the periodical or annual financial statements, or in the event that the contract with the Auditor was terminated as a result of a disagreement between the Listed Company and the Auditor.”

This suspension shall remain in effect until the Company takes the necessary measures to address the reservations contained in the Company’s external auditor’s report on the financial statements for the period ending on 31/12/2023 and subsequent financial statements, in particular the reservations of the item of “Investment in associate companies”, in a manner that ensures that the balances of the financial statements are recorded fairly and accurately, and that the Company works to provide the CMA with financial statements that reflect the financial impact of addressing these observations, by no later than 31/12/2024.

Second: The continuation of listing the shares of Sultan Center Food Company in Boursa Kuwait Securities Exchange shall be reviewed in the event that the Company fails to meet the CMA’s regulatory requirements stipulated in Article (1) of this Resolution. 

Third: Sultan Center Food Company shall provide the CMA with a weekly report on the updates and measures taken to address the suspension of trading its shares listed in Boursa Kuwait Securities Exchange, as of the issuance date of this Resolution. 

In conclusion, the CMA confirms that it will continue its regulatory role in protecting investors, which will also create a fair, competitive, and transparent financial market, as well as reduce the systemic risks that are expected to occur in securities activities and working to ensure compliance with laws and regulations related to securities activities.

Ends-

Notes to Editors:
The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of the CMA's Law.
Furthermore, the Law stipulates the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs pertaining to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw