Riyadh – Mubasher: The board of the Mediterranean and Gulf Insurance and Reinsurance Company (MedGulf) recommended reducing the company’s capital by 12.5% then increasing it via a rights issue.

The current capital amounts to SAR 800 million and is set to be cut to SAR 700 million through the cancellation of 10 million shares, according to a bourse statement on Tuesday.

The capital cut aims to restructure the capital to offset accumulated losses. The transaction will be carried out at the end of the second trading day following the extraordinary general meeting (EGM) that will approve the reduction.

Meanwhile, the board suggested increasing the company’s capital by SAR 350 million to enhance the solvency margin and support its expansions operations.

Eligibility in the subscription will be to shareholders on the EGM meeting day that will approve the said hike, as per the registered shareholders in the register of the Securities Depository Center Company (Edaa) at the end of the second trading day following the EGM meeting date.

NCB Capital has been appointed as a financial advisor and an underwriter for the two transactions. Moreover, the two transactions are subject to the approvals of the extraordinary assembly and other relevant official bodies, the statement noted.

Source: Mubasher

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