Saudi Enaya Board of Directors recommended to reduce capital

13/04/2016 09:45 AST

Saudi Enaya Cooperative Insurance Company announces that the Board of Directors at its meeting on 05-07-1437H corresponding to 12-04-2016G has recommended to reduce the Company's capital as follows:

1-The Company's capital before the capital reduction is SAR 400,000,000 divided into 40,000,000 shares. The share capital will reach 200,000,000 Saudi riyals divided into 20,000,000 shares, after the capital reduction.

2-The Reduction percentage will represent 50% of the Company's capital, and will be through the reduction of 1 share for every 2 shares.

3- Purpose of Capital Reduction: To restructure the capital position of the Company in line with the forthcoming Companies Law.

4-The capital reduction method: Write-off of 20,000,000 Company's shares.

5-The impact of the capital reduction on the Company's obligations: There is no effect of reducing the capital of the Company on its financial obligations.

The company's capital reduction is conditional upon approval of the official authorities and the extraordinary general meeting that will convened in due course.

In case the shareholders of the Company approved during the extraordinary general Assembly meeting the capital reduction, the decision will be binding on all the Company's shareholders registered in the Company's register in the Assets Services and Depository Tadawul as at the close of trading on the day of the extraordinary general Assembly meeting, including shareholders who did not attend the meeting as well as the shareholders who attended the meeting and did not vote or voted against the capital reduction decision.

Moreover, the shareholding percentage of each shareholder in the company will not change because of the capital reduction. Also, the total value of the shareholders investment in the company will not change because of the capital reduction transaction alone. All fractional shares that will result from the capital reduction will be sold, and the proceeds will be distributed to the eligible shareholders of the company.

Tadawul