Riyadh – Mubasher: The board of Saudi Re for Cooperative Reinsurance recommended a capital reduction by 19.6%.

The capital cut aims to restructure the capital, offset accumulated losses, and support the firm’s future growth, according to a bourse filing on Thursday.

The capital would be increased from SAR 100 million to SAR 80.4 million, through cancelling 19.6 million shares.

The capital reduction will have no impact on the company’s financial liabilities, the statement said.

The company noted that the decrease is subject to the related official approvals and the decision of the extraordinary general meeting (EGM).

In case the EGM approved the move, the reduction shall be effective for all shareholders registered with the Securities Depository Centre (Edaa) at the end of the second day following the EGM resolution.