Al Sagr gets CMA nod on capital reduction

Al Sagr Cooperative Insurance Co. obtained on Oct. 5 the approval of the Capital Market Authority (CMA) on its request to reduce capital, according to a bourse filing.

The capital decrease request was submitted to the CMA on Sept. 21.

The company will complete the procedures as regards holding the extraordinary general meeting (EGM) and will announce that at a later time. The shareholders’ circular regarding the capital reduction will be published prior to the EGM.

Further material developments will be duly revealed.

The insurer’s board of directors recommended a capital cut of 65% from SAR 400 million to SAR 140 million to offset its accumulated losses, Argaam reported.

In September, the company received the approval of Saudi Central Bank (SAMA) on its request to reduce capital by SAR 260 million to SAR 140 million.