CMA green lights Al Sagr’s 65% capital cut to SAR 140 mln

Logo of Al Sagr Cooperative Insurance Co. 

The Capital Market Authority (CMA) approved today, Oct. 5, Al Sagr Cooperative Insurance Co.’s request to reduce its capital by 65% to SAR 140 million from SAR 400 million.

Accordingly, shares will reduce from 40 million to 14 million.

CMA said its approval is conditional on the company's extraordinary general assembly approval and completion of the necessary procedures in relation to the applicable regulations.

The company will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected effect of such reduction within sufficient time prior to the extraordinary general meeting (EGM) to enable shareholders to vote on the capital decrease, it added.

The regulator said its approval of a company's application to reduce its capital merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met.

The company’s board of directors recommended, on Sept. 1, a 65% capital reduction to offset the accumulated losses, according to data available with Argaam.