AI Summary
Logo of Gulf General Cooperative Insurance Co.
Gulf General Cooperative Insurance Co.’s board of directors recommended cutting the company’s capital by 54.04% to SAR 137.88 million from SAR 300 million, in a bid to restructure capital and offset accumulated losses, the company said in a statement to Tadawul.
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Capital Cut Details |
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Current Capital |
SAR 300 mln |
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No. of Shares |
30 mln |
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New Capital |
SAR 137.88 bln |
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No. of Shares |
13.79 mln |
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Reduction (%) |
54.04% |
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Method |
Restructuring capital to offset SAR 162.11 mln of the accumulated losses |
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Reason |
Writing off 16.21 mln shares (54.04% for every one share) |
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Date |
The end of the second trading day following the EGM |
The proposed reduction will not have a material impact on the company’s obligations, operations, financial or operational performance, regulatory standing, or shareholders’ ownership, it added.
The move is subject to approval by regulatory authorities and the extraordinary general meeting (EGM).
Gulf General said it will announce the appointment of a financial advisor and the submission of the capital reduction request to the Capital Market Authority (CMA) later.
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