MEDGULF receives SAMA nod to hike capital to SAR 1.05 bln via rights issue

Logo of The Mediterranean and Gulf Insurance and Reinsurance Co.

The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) obtained on June 6, 2021, the Saudi Central Bank’s (SAMA) approval for its planned capital increase from SAR 700 million to SAR 1.05 billion via a rights issue.

There is no financial impact on the company, the insurer said in a statement to Tadawul today, June 7, 2021.

The company will continue to fulfill all the other official authorities’ requirements and announce any future developments in due course.

In April, MEDGULF shareholders approved reducing the company’s capital by 12.5% to SAR 700 million from SAR 800 million, through writing off 10 million shares.

In October 2020, MEDGULF board of directors recommended a capital cut by 12.5% from SAR 800 million to SAR 700 million to offset the accumulated losses, Argaam reported.