Shareholders of Allied Cooperative Insurance Group (ACIG) will vote on a 29.5% capital cut from SAR 200 million to SAR 141 million to offset accumulated losses during the extraordinary general meeting scheduled for August 26.
The company said in a circular that a total of 5.9 million shares will be cancelled (1 share for every 3.3898 shares) to offset 99% of accumulated losses.
Fractional shares, if any, will be collected in one portfolio to be sold at market price at the time. The proceeds will be distributed to the eligible shareholders pro rata, within 30 days from the extraordinary general meeting date.
The company’s board aimed to develop a strategy for future growth and the company’s financial performance. The board reached a decision on restructuring the company’s capital through capital reduction, followed by a rights issue to improve financial solvency and offset accumulated losses.
|
Stock Price and Market Value Following Capital Decrease |
|
|
Stock closing price before capital cut (Hypothetical) |
SAR 20.44 |
|
Capital cut value |
SAR 59 mln |
|
Number of shares canceled |
5.90 mln shares |
|
Number of shares outstanding and issued before capital cut |
20 mln shares |
|
Number of shares outstanding and issued after capital cut |
14.10 mln shares |
|
Market value of shares before capital cut |
SAR 408.8 mln |
|
Stock price following the capital cut (est.) |
SAR 28.99 |
|
Impact of Capital Decrease on Eligible Shareholders with 1,000 Shares Portfolio |
|
|
Shares held before capital cut |
1,000 shares |
|
Closing price before capital cut (Hypothetical) |
SAR 20.44 |
|
Market value of shares before capital cut (Hypothetical) |
SAR 20,440 |
|
Capital cut (%) |
29.50% |
|
Number of shares canceled |
259 shares |
|
Number of shares held after capital cut |
705 shares |
|
Stock price following the capital cut (est.) |
SAR 28.99 |
|
Market value of shares after capital cut (est.) |
SAR 20,438 |
|
Compensation from fractional shares (est.) |
SAR 2.05 |
Comments
{{DisplayName}}
{{ElapsedTime}}