Riyadh – Mubasher: Gulf Union Cooperative Insurance appointed Alawwal Capital on Wednesday as the financial advisor for the former's capital reduction.

The company's board had earlier recommended the reduction of its capital by 31.82% from SAR 220 million to SAR 150 million, through cancelling SAR 70 million.

The capital cut proposal targets the restructure of the capital to be in line with the New Companies Law, according to a bourse filing.

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

The stock fell 3.78% to SAR 11.97 at Wednesday's close.