Allied Cooperative Insurance Group’s (ACIG) board of directors recommended a 29.5% capital reduction to SAR 141 million from SAR 200 million to restructure the company’s capital and offset accumulated losses, the insurer said in a statement on Tadawul.
There is no significant impact of the capital reduction on the company's liabilities or operations, the statement added.
The board also recommended raising the company’s capital afterwards through a SAR 150 million rights issue.
The capital hike aims to boost solvency margin and support expansions.
Both processes, the capital cut and capital hike, are pending approval from the general assembly and regulator.
|
Key Figures of the Capital Reduction |
|
|
Current Capital |
SAR 200 mln |
|
Number of shares |
20 mln shares |
|
Reduction (%) |
29.5% |
|
New Capital |
SAR 141 mln |
|
New number of shares |
14.1 mln shares |
|
Method |
Cancellation of 5.9 mln shares |
|
Driver |
To restructure capital and offset accumulated losses |
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