Bupa Arabia for Cooperative insurance announces receiving Sama's approval of the recommendation of its board of directors to increase the company's capital through bonus shares.
With reference to the company announcement dated Tuesday 25th August 2015, corresponding to 10 Thul Al-Qi'dah 1436H, relating to the recommendation of its Board of Directors, to the General Assembly, subject to the obtaining of all required approvals from all the concerned authorities, to increase the capital of the company through bonus shares, Bupa Arabia for Cooperative Insurance announces receiving SAMA's approval for the proposed capital increase. The SAMA approval was received on Monday 14th September 2015, corresponding to 1st Thul-Hijjah 1436H, through SAMA letter reference 361000150201.
The Company will be submitting its application to the Capital Market Authority (CMA) and completing any other regulatory approvals and processes in due course. The Board of Directors will be recommending, to the General Assembly, a capital increase, from SR400 Million to SR800 Million, representing an increase of SR400 Million, through the issuing of 1 bonus share for every 1 share held, increasing the number of shares from 40 Million shares to 80 Million shares, representing an increase of 40 Million shares, through the utilization of SR400 Million of the Company's existing retained income reserves. The share capital value and the number of shares will therefore both increase by 100%.
The proposed increase in capital will only be initiated once all necessary approvals are received from all the required official authorities, as well as subject thereafter to the approval from the shareholders in the extraordinary general assembly meeting, and the extraordinary general assembly meeting date will be announced at a later stage.