Riyadh - Mubasher: The extraordinary general meeting (EGM) of Allied Cooperative Insurance Group (ACIG) approved the board’s recommendation to cut the company’s capital by 29.5% to SAR 141 million from SAR 200 million.

The number of shares will be reduced to 14.1 million shares from 20 million shares, according to a stock exchange filing on Thursday.

The capital reduction aims to offset the insurer's accumulated losses worth SAR 59 million. Moreover, it will not have any material effect on the company’s financial obligations.

The decision will be enforceable on all shareholders registered at the Securities Depository Center Company (Edaa) at the end of the second trading day following the EGM meeting date.

Last May, the Saudi Capital Market Authority (CMA) approved the aforementioned capital cut.