Dhofar Insurance to seek nod for cutting capital

Muscat: Dhofar Insurance Company’s board has decided to convene an extraordinary general meeting (EGM) to seek approval from shareholders to restructure the company’s capital in a move to eliminate accumulated losses. The plan is to reduce the paid-up capital of the company to OMR10 million from OMR20 million to write off part of the accumulated losses, according to a disclosure statement posted on Muscat Securities Market (MSM) website.
Also, approval will be sought to utilise the legal reserves of the company to the extent of OMR6.62 million and use special reserve of the company amounting to OMR50,000 to write off part of the accumulated losses.
The EGM will also consider a proposal for a rights issue of OMR5 million mandatory convertible bonds of a nominal value of OMR1 per bond. Further, plans are afoot to float a rights issue of an aggregate amount of 20 million shares of a nominal value of 100 baisas per share.
The extraordinary general meeting will be held on December 10 at the Crowne Plaza Hotel.
The EGM will also consider and approve the increase in the authorised share capital of the company from OMR20 million to OMR30 million.
Besides these, it will consider the proposal to undertake a further capital reduction of the issued and paid-up share capital of the company from OMR12 million to OMR10 million immediately after completion of the rights issue and registration of the rights shares with the relevant regulatory authorities.
The amendment to the Articles of Association contained in item 1 of the agenda shall be effective only after its approval by the Ministry of Commerce and Industry and registration in the Commercial Register pursuant to Article 123 of the Commercial Companies Law.