ACIG shareholders approve 29.5% capital cut to offset accumulated losses

Allied Cooperative Insurance Group’s (ACIG) shareholders approved a 29.5% capital cut to SAR 141 million from SAR 200 million during the extraordinary general assembly meeting (EGM) 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.

The process will not have a significant impact on the company’s liabilities, the statement added.

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

Shareholders, however, rejected amending Article No. 12, 15 and 45 related to the stock trading, company’s management and Zakat and reserves.

In a separate statement, Tadawul said that fluctuation limits for ACIG will be based on a share price of SAR 34.05 and the outstanding orders will be canceled.

Furthermore, the company's shares will be suspended as per the listing rules for two business days starting from Thursday, Aug. 27, 2020, until the Securities Depository Center Company (Edaa) reflects shares reduction on investors’ portfolios. 

Trading suspension will be lifted by the end of Sunday, Aug. 30, 2020.