Mubasher: The board of Arzan Financial Group for Financing and Investment has approved on Thursday reducing the company’s capital, according to a bourse filing.

The board has approved the asset evaluation and recommended to the company’s general assembly reducing cutting capital from KWD 80.288 million to KWD 29 million, the company said in a statement to Boursa Kuwait on Sunday.

Shareholders will be compensated with a share distribution of a subsidiary company’s stock.

The company’s board of directors recently received the evaluation for assets that will be moved into the new company that will result from a split.

Assets were evaluated at around KWD 51.21 million ($169.2 million), the company said in a statement to Boursa Kuwait on Monday.

In February, the company’s board of directors approved the proposed split, which will divide the company into two spate companies.

Each shareholder in Arzan will be a shareholder in both companies after the split, the company noted.