Riyadh – Mubasher: Gulf Union Cooperative Insurance's board recommended decreasing its capital by 31.82%.

The capital would be reduced from SAR 220 million to SAR 150 million, through cancelling SAR 70 million; the number of shares will subsequently decrease from 22 million to 15 million shares, according to a bourse filing on Wednesday.

The capital cut proposal targets the restructure of the capital to be in line with the New Companies Law.

The company added that the reduction is subject to the approval of the general assembly, adding that the capital cut portfolio will be submitted to the Capital Market Authority (CMA) and a financial advisor will be appointed to take over all regulatory procedures.

The Saudi-listed firm noted that there is no impact for the decrease on the company's financial obligations. The shareholders' equity and investment value will not change, the statement said.

The insurance company received the Saudi Arabian Monetary Agency's (SAMA) approval in October on decreasing its capital.