SALAMA Proposes Major Capital Reduction
Islamic Arab Insurance Company (SALAMA) announces a significant capital reduction, inviting shareholders to a pivotal General Assembly meeting.
Summary
SALAMA plans to reduce its issued share capital significantly, inviting shareholders to discuss this and other agenda items at their General Assembly meeting.
The Islamic Arab Insurance Company, commonly known as SALAMA, has announced an upcoming General Assembly meeting scheduled for October 11, 2025. This meeting will be crucial as the company seeks shareholder approval for a significant reduction in its issued share capital. This move is part of a strategic decision recommended by the company's board of directors and is contingent upon obtaining necessary approvals, including that of the Central Bank of the UAE.
SALAMA, a prominent player in the takaful insurance sector in the United Arab Emirates, plans to reduce its share capital from AED 939,588,998 to AED 483,021,183. This represents a reduction of AED 456,567,815. The decision to lower the capital base could be seen as a strategy to improve financial efficiency and potentially enhance shareholder value.
The reduction in capital will involve decreasing the number of shares from 939,588,998 to 483,021,183, each with a nominal value of AED 1.00. This move is likely aimed at optimizing the company's capital structure, possibly to address issues related to excess capital or to align with regulatory requirements. Such a reduction could help streamline operations and focus on core business activities.
For investors, this capital reduction could have mixed implications. On one hand, it might indicate a leaner and potentially more profitable company structure in the long term. On the other hand, it could also signal challenges that the company might be facing, prompting the need for such a drastic measure. Therefore, investors should closely monitor the outcomes of the General Assembly meeting and any subsequent announcements from the company.
Given the current situation and the neutral outlook for SALAMA, it might be prudent for shareholders to hold their positions until more clarity emerges post-assembly. The decision to reduce capital could lead to changes in the company's financial dynamics, impacting future dividends and share value.
In conclusion, while the capital reduction proposal by SALAMA is a significant step, its impact will largely depend on how effectively the company executes its strategy post-reduction. Shareholders and potential investors should stay informed and consider the broader market context before making any investment decisions.
Source
Summary
The document is a critical notice requiring immediate attention from shareholders of the Islamic Arab Insurance Company (SALAMA). Shareholders uncertain about the actions to take should seek independent financial advice from a licensed adviser in the UAE. If shares have been sold or transferred, the document should be forwarded to the new owner or relevant agent. The implementation of a transaction is contingent on approval of resolutions at the SALAMA General Meeting and receipt of necessary regulatory approvals, including those from the UAE Central Bank, the Securities and Commodities Authority (SCA), and a Sharia compliance opinion. SCA's approval of the document does not equate to approval of the transaction itself and the SCA is not responsible for the document's content accuracy. The SALAMA Board is accountable for the document's authenticity and completeness. The document's distribution may be restricted outside the UAE, and recipients should comply with local laws to avoid legal violations.
Summary
The proposed amendments to the Articles of Association of the Islamic Arab Insurance Company (PJSC) involve changes to the company's capital structure. Article 6 allows for a capital reduction subject to the Companies Law and approval by the IA, provided it does not breach current or future obligations. This reduction is part of a Capital Optimization Plan to improve the company's solvency, decreasing the issued share capital from AED 939,588,998 to AED 483,021,183. Additionally, Article 5 permits a capital increase through the issuance of mandatory convertible sukuk, raising the share capital from AED 483,021,183 to AED 881,654,440. Both amendments are in accordance with Cabinet Resolution No. 42 of 2009 concerning Insurance Company Minimum Capital Regulations.
Summary
The Board of Directors of Islamic Arab Insurance Company (SALAMA) PJSC invites shareholders to attend the General Assembly meeting on Saturday, October 11, 2025, at 3:00 PM. The meeting will be held at the company's headquarters in Dubai or via remote participation through virtual meetings with video and electronic voting. The agenda includes appointing the meeting secretary and vote collector, and a special resolution to approve the reduction of the company's issued share capital from AED 939,588,998 to AED 483,021,183, subject to required approvals, including from the Central Bank of the UAE.
Summary
The disclosure clarifies the approval process for proxies as per Clauses 1 and 2 of Article 40 of the Corporate Governance Manual. Shareholders entitled to attend the general assembly can delegate someone who is not a board member, company employee, or securities brokerage company employee, using a written power of attorney that specifies the proxy's right to attend and vote. The proxy should not hold more than 5% of the company's issued capital. Those lacking legal capacity must be represented by legal representatives. The shareholder's signature on the power of attorney must be approved by a notary public, the commercial chamber or economic department in the state, a licensed bank or company, or any other licensed entity. The proxy form should include the shareholder's contact details and the brokerage firm that approved the proxy. This form serves as a guideline, allowing clients to issue proxies according to their deemed appropriate limits and powers, ensuring the shareholder's signature is approved by one of the mentioned authorities. For inquiries, contact can be made via phone or email.
