Salama gets CMA's nod on capital reduction to SAR 100 mln

Logo of Salama Cooperative Insurance Co.

The Capital Market Authority (CMA) approved today, July 21, the application received from Salama Cooperative Insurance Co. to reduce its capital from SAR 250 million to SAR 100 million, going down from 25 million shares to 10 million, according to a statement.

This approval is conditional on the company's extraordinary general assembly’s approval and completion of the necessary procedures in relation to the applicable regulations, the regulator stated.

The company will publish a disclosure document to its shareholders related to the proposed method of capital cut and the expected effect of such reduction within sufficient time prior to the extraordinary general meeting (EGM) to enable them to vote on the move, according to the statement.

CMA noted that its approval of a particular company's application to reduce its capital should never be viewed as an endorsement of the feasibility of the capital decrease, adding that its decision merely means that the regulatory requirements as per the Capital Market Law and its implementing regulations have been met.