Logo of Gulf General Cooperative Insurance Company
Gulf General Cooperative Insurance Co’s. (Gulf General) board of directors recommended today, Nov. 9, cutting the company’s capital by 40% from SAR 500 million to SAR 300 million, by writing off 20 million shares, at a 0.4 share for each share, as the following table illustrates:
|
Capital Reduction Details |
|
|
Current Capital |
SAR 500 mln |
|
Number of Shares |
50 mln |
|
Percentage of Reduction |
40% |
|
New Capital |
SAR 300 mln |
|
Number of Shares |
30 mln |
|
Reason |
Restructuring capital to offset SAR 200 mln accumulated losses |
|
Method |
Writing off 20 mln shares at a rate of 0.4 share per share |
|
Date |
Second trading day following the EGM’s approval |
The capital reduction will not materially affect Gulf General’s commitments, operations, financial or operational performance, or regulatory compliance, nor will it alter any shareholder's stake, the company added.
The move is pending the approval of the competent authorities and the extraordinary general meeting (EGM).
Updates regarding the submission of the capital cut request to the Capital Market Authority (CMA) will be duly disclosed.
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