Riyadh-Mubasher: Gulf Union Cooperative Insurance said its board proposed reducing capital by nearly 40.9% (SAR 90 million) to SAR 130 million from SAR 220 million, according to a bourse statement.
The reduction will be effected through cancelling 1 share for roughly each 2.44 shares.
The company confirmed that the move aims to offset SAR 90 million from its accumulated losses.
It added that the capital reduction will not affect its financial obligations.
Shareholders of record on the date of the next extraordinary general meeting will be eligible for the reduction.
