The Mediterranean and Gulf Insurance and Reinsurance Co.’s (MEDGULF) board of directors recommended a capital cut by 12.5% from SAR 800 million to SAR 700 million to offset the accumulated losses, the company said in a bourse statement.
The board of directors also proposed a capital increase by SAR 350 million via a rights issue following the capital reduction. The capital top-up aimed at enhancing the company’s financial solvency and financing its expansions.
The capital cut/increase is subject to the approval of the competent authorities, including Saudi Arabian Monetary Authority (SAMA), Saudi Stock Exchange (Tadawul), in addition to the next extraordinary general assembly meeting (EGM).
The Saudi insurer appointed NCB Capital as a financial advisor and underwriter for the capital reduction/ increase.
The company will announce the submission date for capital reduction application file to the Capital Market Authority (CMA) for its approval in due course.
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Key Figures of the Capital Reduction |
|
|
Current Capital |
SAR 800 mln |
|
Number of shares |
80 mln shares |
|
Reduction (%) |
12.5% |
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New Capital |
SAR 700 mln |
|
New number of shares |
70 mln shares |
|
Method |
Writing off 10 million shares |
|
Reason |
Capital restructuring to offset accumulated losses |
|
Date |
The second trading day following the EGM that will approve the capital reduction |
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