Logo of Gulf General Cooperative Insurance Co. (Gulf General)
Shareholders of Gulf General Cooperative Insurance Co. (Gulf General) approved the board’s proposal to cut capital by 40% from SAR 500 million to SAR 300 million through cancelling 20 million shares, during the extraordinary general meeting (EGM) held on March 19, 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 held |
|
Date of Reduction |
Second trading day following the EGM’s approval |
The capital reduction will not materially affect Gulf General’s obligations, operations, financial or operational performance, or regulatory compliance, nor will it alter any shareholder's stake, the company said in a statement to Tadawul.
According to data available with Argaam, the company’s board of directors recommended on March 18 increasing the capital by SAR 300 million via a rights issue.
Meanwhile, Tadawul said in a separate statement that the stock fluctuation limit will be based on a share price of SAR 14.02, and the outstanding orders will be cancelled.
A trading halt will be placed on the stock as per the listing rules for two business days as of today, March 20, and Edaa will deposit the new shares in shareholders’ portfolios. Trading will resume on the stock by the end of March 21.
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