Saudi Arabia’s Capital Market Authority (CMA) approved a request by Mediterranean and Gulf Cooperative Insurance and Reinsurance Co. (MEDGULF) to reduce its capital by 12.5% from SAR 800 million to SAR 700 million, the market regulator said in a statement.
Accordingly, the total number of shares will be reduced from 80 million to 70 million.
The CMA’s approval should not be deemed as an endorsement of the feasibility of the capital decrease.
In October, 2020, MEDGULF board of directors recommended a capital cut by 12.5% from SAR 800 million to SAR 700 million to offset the accumulated losses, Argaam reported.
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Key Figures of the Capital Reduction |
|
|
Current Capital |
SAR 800 mln |
|
Number of shares |
80 mln shares |
|
Reduction (%) |
12.5% |
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New Capital |
SAR 700 mln |
|
New number of shares |
70 mln shares |
|
Method |
Writing off 10 million shares |
|
Reason |
Capital restructuring to offset accumulated losses |
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Date |
The second trading day following the EGM that will approve the capital reduction |
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