Gulf Union gets CMA nod on capital cut

Gulf Union Cooperative Insurance Co. has obtained approval from the Capital Market Authority (CMA), to reduce capital from SAR 220 million to SAR 150 million, the market regulator said in a statement to Tadawul on Monday.

The number of shares will be cut from 22 million to 15 million.

This move is subject to the approval of the company’s extraordinary general meeting.

The insurer’s board of directors on March 21 recommended a 31.82 percent capital reduction, by writing off one share for every 3.14286 shares held.