Salama concludes fractional shares sale, fails to deposit proceeds

Salama Cooperative Insurance Co. said the sale of fractional shares resulting from capital decrease was completed on Aug. 25, according to a bourse filing.

The company, however, failed to distribute sale proceeds during the period stated in the shareholders' circular, which is set at 30 days from the date of the extraordinary general assembly meeting (EGM) at which the capital cut was approved. It ascribed this to the delay in completing procedures for transferring proceeds.

Salama expects the proceeds to be deposited on Oct. 13, 2022.

The company sold 1,271 shares, at an average price of SAR 26 each, totaling SAR 33,052.

Shareholders approved, on Aug. 17, the board’s recommendation on a 60% capital decrease from SAR 250 million to SAR 100 million.