Salama shareholders approve capital hike

Logo of Salama Cooperative Insurance Co.

Shareholders of Salama Cooperative Insurance Co. approved proceeding with capital hike procedures and obtain the approval of the of the relevant authorities, during the extraordinary general assembly meeting (EGM) held Dec. 15, the insurer said in a statement to Tadawul.

Meanwhile, the EGM rejected a proposal to dissolve the company after obtaining regulatory approvals.

In August, the insurer’s board of directors proposed increasing capital by SAR 200 million to SAR 300 million, through a rights issue, according to data compiled by Argaam.

The capital hike recommendation was then amended to SAR 100 million, to bring the total capital after the increase to SAR 200 million.

In November, the Saudi Central Bank (SAMA) approved the request received from Salama Cooperative Insurance Co. to increase its capital from SAR 100 to SAR 200 million through a rights issue.

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