Malath Cooperative Insurance and Reinsurance Co. shareholders have approved the board’s proposal to reduce capital by 60 percent to SAR 120 million from SAR 300 million, the insurer said in a bourse statement.
The number of outstanding shares will be reduced to 12 million from the current 30 million (at the rate of 1.8 shares for every three outstanding shares).
Shareholders also approved rebranding the company into Malath Cooperative Insurance, in addition to amending the company’s Articles of Incorporation, in line with the regulations set by the Ministry of Commerce and Investment (MOCI) and Saudi Arabian Monetary Authority (SAMA).
The Saudi insurer was asked by the Saudi Arabian Monetary Authority (SAMA) to resolve its financial issues, after its accumulated losses accounted for more than 50 percent of capital as of 2016-end, Argaam earlier reported.
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