Amana Insurance recommends cutting capital by 45.8% to SAR 130 mln

Amana Cooperative Insurance Co. said its board of directors recommended reducing the company’s capital to SAR 130 million from SAR 240 million – a 45.8% decrease through cancelling 11 million shares (one share for every 2.18 shares).

The capital restructuring is the company's attempt to write-off part of the accumulated losses of SAR 110 million as of Sept. 30, 2020, the company said in a statement to Tadawul.

The decision is condition to approvals from the extraordinary general assembly and competent authorities.

The board of directors decided to delegate to the executive management to appoint a financial advisor. The executive management appointed Alinma Investment Co. as the financial advisor of the capital reduction.

The company will announce in the due time when submitting the capital reduction’s file to Capital Market Authority to obtain its approval.