AICC’s board recommends 33.75% capital cut to offset loss

Arabia Insurance Cooperative Co.’s (AICC) board of directors has recommended a 33.75 percent capital reduction from SAR 400 million to SAR 265 million.

The insurer will cancel 13.5 million shares (one share for each 2.96 outstanding shares) to offset accumulated loss of SAR 135 million, the company said in a filing to the Saudi bourse, Tadawul.

The capital reduction is subject to approval of the shareholders who will vote on the decision in an extraordinary general assembly meeting, the company added.

Ownership ratios of the company’s shareholders will remain unchanged after the capital reduction as does their total investments. Fractional shares will be accumulated and sold by the insurer and proceeds will be distributed to shareholders’ according to their eligibility, AICC added.