Gulf General board recommends 40% capital cut to SAR 300 mln

Logo of Gulf General Cooperative Insurance Company

Gulf General Cooperative Insurance Co’s. (Gulf General) board of directors recommended today, Nov. 9, cutting the company’s capital by 40% from SAR 500 million to SAR 300 million, by writing off 20 million shares, at a 0.4 share for each share, as the following table illustrates:

 

Capital Reduction Details

Current Capital

SAR 500 mln

Number of Shares

50 mln

Percentage of Reduction

40%

New Capital

SAR 300 mln

Number of Shares

30 mln

Reason

Restructuring capital to offset SAR 200 mln accumulated losses

Method

Writing off 20 mln shares at a rate of 0.4 share per share

Date

Second trading day following the EGM’s approval

 

The capital reduction will not materially affect Gulf General’s commitments, operations, financial or operational performance, or regulatory compliance, nor will it alter any shareholder's stake, the company added.

 

The move is pending the approval of the competent authorities and the extraordinary general meeting (EGM).

 

Updates regarding the submission of the capital cut request to the Capital Market Authority (CMA) will be duly disclosed.

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