Saudi: Al Sagr Cooperative’s shareholders approve 65% capital decrease

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Riyadh – The shareholders of Al Sagr Cooperative Insurance Company agreed to reduce its capital by 65% to SAR 140 million from SAR 400 million through the cancellation of 26 million shares.

The new capital will be distributed over 14 million shares, instead of 40 million shares prior to the decrease, according to a recent bourse filing.

Al Sagr Cooperative Insurance noted that the capital cut will not affect its financial obligations.

It is worth mentioning that the shareholders greenlighted the capital cut during the extraordinary general meeting (EGM) that was held on 13 October 2022.

Last September, the board recommended the capital reduction to amortise 100% of the Saudi firm’s SAR 260 million accumulated losses.

Earlier this month, the Capital Market Authority (CMA) passed the insurer’s capital decrease after it had submitted the request on 21 September 2022.