The Mediterranean and Gulf Insurance and Reinsurance Co.’s (MedGulf) general assembly has approved a 60 percent capital reduction to SAR 400 million from SAR 1 billion, to restructure capital in line with the new companies law and to offset accumulated losses.
The capital cut will not affect the company’s liabilities, the insurer said in a statement on Tadawul.
The capital cut would apply to all shareholders of record on the day of the general assembly and those registered at the Securities Depository Center two days after this date.
In a separate statement, Saudi Stock Exchange said trading in MedGulf stock will be suspended for two business days starting from Monday Sept. 25, until the Securities Depository Center Company (Edaa) adjusts the shares reduction on investors’ portfolios. The suspension will be lifted at the end of trading on Tuesday Sept. 26.
Tadawul has set the fluctuation limits for MedGulf based on a share price of SAR 31.60.
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Capital reduction details |
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Current Capital |
SAR 1 billion |
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Number of shares |
100 mln shares |
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Capital cut percent |
60% (6 share for every 10 shares) |
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New capital |
SAR 400 mln |
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New number of shares |
40 mln shares |
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Method of capital cut |
Writing off 60 mln shares |
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Reasons |
Restructuring the company’s capital and to offset accumulated losses |
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