Gulf General Cooperative Insurance discusses BOD’s recommendation to reduce capital to SAR 300 mln

Gulf General Cooperative Insurance Co. called its shareholders to attend the Extraordinary General Assembly meeting, which included the Decrease of the company’s capital (First Meeting), which was held at 6:30 pm on Monday, January 29, 2024. through means of modern technology

Agenda:

– Voting on the Board’s recommendation regarding the decrease of the Company’s capital, as the following:

• Company’s capital before the decrease: (500,000,000) Saudi Riyal.

• Company’s capital after the decrease: (300,000,000) Saudi Riyal.

• Number of Shares before the decrease: (50,000,000) shares.

• Number of Shares after the decrease: (30,000,000) shares.

• The percentage of the capital decrease: 40% of the Company’s capital.

• Reasons for capital decrease: Restructuring the company’s capital to write-off an amount of 200,000,000 riyals (two hundred million Saudi riyals) from the accumulated losses.

• Method of capital decrease: Cancellation of (20,000,000) shares of the Company’s shares at a discount of 0.4 shares for each share.

• Date of decrease: If the item is approved, reduction resolution shall be effective on the eligible shareholders who are holding shares on day of convening the Extra-Ordinary General Assembly and who are registered in the shareholders registry with the Securities Depository Center Company (“Edaa”) at the end of the second trading day following the date of convening the Extraordinary General Assembly meeting, in which the capital reduction was decided.

• Impact of Capital decrease on Company’s obligations: There is no material impact from the capital reduction on the company’s financial, operational, or regulatory obligations, operations, or performance, and the ownership percentage of any shareholder will not change as a result of the capital reduction.