Arig restructures capital

Middle East

The Arab Insurance Group ( Arig) has obtained permission from its shareholders to restructure its capital after three consecutive years of net losses totalling US$277.2mn. To begin with, the number of shares in the company will be reduced from 360mn to 150mn. Shareholders will be issued with five shares for every 12 they currently hold. The company is preparing the ground for a 100mn share rights issue later in the year. Current shareholders will be offered two shares for every three they hold after the restructuring. Three regional governments, Kuwait, Libya and the United Arab Emirates, each hold a 16.5% stake in Arig. Encouragingly, the company produced a net profit of $105,000 for the first quarter of 2002.