Mediterranean & Gulf Re allowed to reduce capital

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RIYADH — The Saudi Capital Market Authority (CMA) has issued its resolution approving The Mediterranean and Gulf Insurance and Reinsurance Company's request to reduce its capital from SR1,000,000,000 to SR400,000,000, thus reducing the number of shares from 100,000,000 shares to (40,000,000) shares. Thie approval is conditional on the company’s extraordinary general assembly approval and completion of the necessary procedures in relation to the applicable regulations.

The company will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected effect of such reduction within sufficient time prior to the Extraordinary General Assembly Meeting to enable shareholders to vote on the capital decrease.

The CMA’s approval of a particular company’s application to reduce its capital should never be viewed as an endorsement of the feasibility of the capital decrease. The CMA’s approval of a company’s application to reduce its capital merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met. — SG


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