Riyadh – Mubasher: Saudi Re for Cooperative Reinsurance Co.’s extraordinary general meeting (EGM) on Monday, 1 January, approved to reduce its capital by 19%.

The firm’s capital will be cut to SAR 810 million from SAR 1 billion, according to a statement on Tuesday to the Saudi Stock Exchange (Tadawul).

The shares will be decreased to 81 million from 100 million.

The Tadawul-listed company will decrease capital to restructure accumulated losses and support its future developments.

Capital reduction will not impact on the firm’s commitments.

The capital decrease will be implemented on shareholders who are registered in the group’s register at the depository centre (EDAA) at the end of trading day that followed the EGM.

The shareholders also approved amending some items in the company’s articles of association to cope with capital cut.

Saudi Re’s stock fluctuation rate was calculated at SAR 9.20 and trading on stock will be suspended for two days, effective Tuesday, 1 January.  

EDAA will apply the capital cut in shareholders’ portfolios.

Trading on stock will be resumed by the end of trading day Wednesday, 3 January.