Shareholders at the annual general meeting of Takaful Emarat Insurance Company have approved a special resolution allowing for a capital increase of AED185m ($50.4m) for the company.
This approval for the rights issue was given on 14 June, according to a company statement lodged with the Dubai Financial Market on the AGM results.
The AED185m capital increase is part of a capital restructuring process started earlier this year by the company. It is higher than the AED125m increase first proposed in February 2024.
In February, the company announced that approval had been received to write off accumulated losses amounting to AED132.43m through the cancellation of 124.35m shares in the company with the nominal value of AED 1 per share on a pro rata basis and the use of reserves to extinguish accumulated losses of AED8.08m so that the company’s issued capital would be AED25.65m, instead of AED150m.
At the AGM last month, shareholders also approved authorising the company to undertake all necessary procedures and steps to complete the capital reduction and capital increase exercise.
Mr Mohammed Abu Quora, CEO of Takaful Emarat, said, “We believe that the shareholders’ approval of the capital increase, along with our strategic initiatives, will position the company for sustainable growth and profitability in the years to come.”
Takaful Emarat had previously sought a merger deal. In February 2023, a planned merger between Salama and Takaful Emarat was called off.