CMA approves Salama’s capital reduction to SAR 100 mln

The Capital Market Authority (CMA) approved today, July 21, the application received from Salama Cooperative Insurance Co. to reduce its capital from SAR 250 million to SAR 100 million.

Accordingly, the total number of shares will go down from 25 million to 10 million.

This approval is conditional on the company's extraordinary general assembly’s approval and completion of the necessary procedures, the market regulator said in a statement.

The company will publish a disclosure document to its shareholders related to the proposed method of capital cut and the expected effect of such reduction within sufficient time prior to the extraordinary general meeting (EGM) to enable them to vote on the move.

The CMA noted that its approval of a particular company's application to reduce its capital should never be viewed as an endorsement of the feasibility of the capital decrease, adding that its decision merely means that the regulatory requirements as per the Capital Market Law and its implementing regulations have been met.