Gulf Union gets initial nod for capital hike plan

Gulf Union Cooperative Insurance Co. received on Sunday the approval of Saudi Arabia’s central bank for its plan to increase its capital from SAR 165 million to SAR 220 million.

According to the company’s filing on Tadawul, the central bank’s approval stipulates that the company should submit regular reports on its latest developments.

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Gulf Union is required to submit its ordinary general meeting minutes, which include fiscal year 2013’s financial statements on March 31.

The central bank has also asked​ the company to submit written statements signed by major shareholders and strategic partners stating that they have attended the company’s extraordinary general meeting approving the capital hike plan.

Strategic partners should also confirm that disputes over debit accounts have been settled.

Last May, the company’s board of directors approved its capital raise plan, according to data available on Argaam.