ACIG shareholders to vote on 29.5% capital cut on Aug. 26

Allied Cooperative Insurance Group’s (ACIG) shareholders are set to vote on a 29.5% capital cut from SAR 200 million to SAR 141 million during the extraordinary general assembly meeting that will be held on August 26, 2020, the insurer said in a statement on Tadawul.

The capital cut is intended to offset accumulated losses through writing off 5.9 million shares.

 In January, the company’s board of directors recommended 29.5% capital reduction to SAR 141 million from SAR 200 million to offset accumulated losses, as reported by Argaam.

The recommendation also included a capital hike through SAR 150 million rights issue following the capital cut.

The general assembly will also vote on amending Article 8 of the company's articles of incorporation related to the capital reduction.

It will further vote on amending Article No. 3, 12, 19 and 45 related to the company's objectives, stock trading, remuneration of board members, and Zakat and reserves.

In January, the company’s board of directors recommended 29.5% capital reduction to offset accumulated losses.

The recommendation also included a capital hike through SAR 150 million rights issue following the capital cut.

Shareholders will participate and vote on the meeting agenda items through Tadawulaty system as of Aug. 22, as per the Capital Market Authority’s (CMA) circular issued on March 16, in line with the government’s efforts to prevent the spread of coronavirus.