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Mar 2021

Saudi Arabia: Amana directors propose capital reduction

Source: Middle East Insurance Review | Jan 2021

Amana Cooperative Insurance announced that its board of directors have recommended slashing the company’s capital by 45.83% to write off accumulated losses.
In a statement to the Saudi bourse, Amana said the capital would be reduced from SAR240m ($64m) to SAR130m. The accumulated losses of the company stood at about SAR110m at 30 September 2020. This amount represented 45.83% of the capital of SAR240m.
The statement said the capital reduction would involve the cancellation of 11m of the company’s shares, by cutting one share for every 2.1818 shares, lowering the number of shares from 24m to 13m.
An extraordinary general meeting will be held for shareholders to vote on the capital reduction. The move is also conditional on the approval of the authorities.
Separately, Amana had signed last October a non-binding MoU with Saudi Enaya Cooperative Insurance to assess the feasibility of a merger between them. Amana said the two companies would start the verification and examination process for the technical, financial, legal and actuarial aspects of the merger and enter into non-binding discussions regarding the details of the terms and conditions of the proposed merger. M 
SAR1 = $0.27
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