The Saudi Capital Market Authority agreed to reduce the capital of United Group for Cooperative Insurance Company ACIG from 200 million riyals to 141 million riyals.
According to ArabiaNet, the number of the company’s shares will be reduced from 20 million shares to 14.1 million shares.
The authority said that this approval is conditional on the approval of the extraordinary general assembly of the company and the completion of the relevant procedures and regulatory requirements. The company will publish a report prepared by it that contains the proposed method for reducing the capital and the expected effects of that reduction sufficiently before the extraordinary general assembly is held in order for shareholders to be able to vote on Capital Decision Decision. The Authority’s approval of the company's request to reduce its capital should not be seen as an endorsement of the feasibility of the capital reduction, as the Authority’s decision to approve the company’s request means that the regulatory requirements have been complied with according to the Capital Market Law and its implementing regulations.
