The Saudi Central Bank has agreed to complete the merger of Saudi Enaya Cooperative Insurance and Amana Cooperative Insurance Company.
According to Arabiya Net, the two companies clarified in a statement that the completion of the merger deal is subject to a number of conditions, including obtaining all the remaining statutory approvals and the approval of the shareholders of the two companies.
Amanah stated that its capital will be increased to 288.580 million riyals, by issuing 15.85 million shares for the purpose of merging Enaya, and transferring all Enaya's assets and obligations to Amana. By offering to exchange securities.
Last October, the two companies announced the signing of an amendment supplement to the binding merger agreement that includes an extension of the agreement for an additional 6 months to meet the required conditions.
The two companies had concluded a binding merger agreement on May 2, 2021, at which time the agreement stipulated that the preconditions for the merger deal would be fulfilled within six months from the date of signing the agreement.
The two companies agreed that if the merger project succeeds, the merger will be completed by way of shares exchange, so that Amana Cooperative Insurance Company, upon completion of the merger, will issue new shares to the shareholders of Saudi Enaya Insurance Company. Co-operative in exchange for all issued shares in Enaya Company.
Upon completion of the transaction, Enaya's assets and liabilities will be transferred to Amana, where Enaya shareholders will own 55% of the new company after the merger, while Amana's existing shareholders will own 45 percent. % of the share capital of Amanah Company.
