The Central Bank of Saudi Arabia, Sama, approved the merger between Al-Ahly Takaful and the Arab Shield for Cooperative Insurance.
According to Arab Net, the two companies said in a statement that the implementation of the merger is still subject to a number of conditions, including obtaining the remaining statutory approvals and the approval of the two companies' shareholders.
The Arab Shield Cooperative Insurance Company had announced that it had signed a binding merger agreement to purchase all the shares of Al-Ahly Takaful Company's shareholders by submitting a share swap offer without paying a cash consideration.
The swap will take place by increasing the capital of the Shield Insurance Company by issuing new ordinary shares to the shareholders of Al-Ahly Takaful Company.
In the event that the merger deal is approved by all relevant government agencies and by the extraordinary general assembly of both companies, Al-Dara' Insurance Company will issue a number (23,852,462) A new ordinary share with a nominal value of 10 riyals per share in exchange for the purchase of all issued shares in Al-Ahly Takaful Company.
The Arab Shield stated that the total value of the deal, upon completion, will amount to 238.524 million riyals, meaning that 1.43 shares will be issued in the Shield Insurance Company for every one (1) share. In Al-Ahly Takaful Company.
The new shares will be issued by increasing the capital of the Shield Insurance Company from 400 million riyals to 638.524 million riyals, by increasing the number of shares from 40 million shares to 63.852 million shares. .
The shareholders of Al-Ahly Takaful Company will own 37.36% of the capital of Al-Dara Insurance Company after the increase, and the ownership percentage of the current shareholders in Al-Dara Insurance Company will decrease from 100% to 62.64 %.
