Gulf General shareholders OK 40% capital cut to SAR 300M; trading halted for 2 days

Logo of Gulf General Cooperative Insurance Co. (Gulf General)

Shareholders of Gulf General Cooperative Insurance Co. (Gulf General) approved the board’s proposal to cut capital by 40% from SAR 500 million to SAR 300 million through cancelling 20 million shares, during the extraordinary general meeting (EGM) held on March 19, as the following table illustrates:

The capital reduction will not materially affect Gulf General’s obligations, operations, financial or operational performance, or regulatory compliance, nor will it alter any shareholder's stake, the company said in a statement to Tadawul.

According to data available with Argaam, the company’s board of directors recommended on March 18 increasing the capital by SAR 300 million via a rights issue.

Meanwhile, Tadawul said in a separate statement that the stock fluctuation limit will be based on a share price of SAR 14.02, and the outstanding orders will be cancelled.

A trading halt will be placed on the stock as per the listing rules for two business days as of today, March 20, and Edaa will deposit the new shares in shareholders’ portfolios. Trading will resume on the stock by the end of March 21.