UCA Board Proposes 25% Capital Reduction to Offset Accumulated Losses

United Cooperative Assurance Co. (UCA) announced on Monday the Board of Directors’ decision to recommend to the Extraordinary General Assembly Meeting of Shareholders to reduce capital from SAR 400 million to SAR 300 million by 25%.

The number of shares before the reduction was 40 million shares, and will become 30 million shares after the increase.

The Company explained that the capital reduction will be done by cancelling 10 million shares of its shares at a rate of reducing 0.25 shares per share, in order to restructure the capital to extinguish SAR 100 million of accumulated losses.

The capital will be reduced at the end of the second trading day following the Extraordinary General Assembly in which the capital reduction is decided.