Riyadh – Mubasher: The extraordinary general meeting (EGM) of Malath Cooperative Insurance and Reinsurance approved the board’s recommendation to decrease the capital by 60%.
The capital will be cut to SAR 120 million from SAR 300 million, according to a bourse filing on Thursday.
The company said that the decrease's purpose is to restructure the capital to be in line with the New Companies Law.
Malath will cancel 18 million shares or 1.8 shares per each three shares, shrinking the overall number of shares to 12 million from 30 million.
The EGM voted on amending the company’s bylaws, in addition to changing the firm’s name to Malath Cooperative Insurance.
The capital cut will not have any financial impact on the company’s financial obligations. Shareholders of record at the end of trading on the EGM day will be affected by the reduction.
Saudi Stock Exchange (Tadawul) set the fluctuation limit for Malath at SAR 21.80 on Thursday.
