MetLife AIG ANB Cooperative Insurance Co. announced in a bourse filing on Monday the calculation method for the market value of new shares issued to its shareholders.
The market value will be calculated based on:
-The agreed swap ratio (0.658 share in Walaa Cooperative Insurance Co. for every share in MetLife).
-Walaa’s share price on the effective date of the merger after the creditors’ objection period ends.
The current price of MetLife shares does not affect the number and value of the new shares that will be issued by Walaa in favor of the shareholders who are entitled to the new ones, according to the shareholders’ record on the merger date.
This will be done taking into consideration the settlement procedures (T + 2) by the end of the second trading day following the merger effective date.
In case of realizing fractional shares during the process of calculating the number of shares for MetLife’ shareholders based on the swap ratio, the resulting number will be rounded to the lowest correct.
Following that, the fractional shares will then be collected and sold on Tadawul at the current market price on behalf of MetLife shareholders.
All the proceeds resulting from the sale of those fractional shares will then be distributed to shareholders who are entitled to them, within a maximum period of 30 days from the merger’s completion date, the statement clarified.
It further added that the costs related to the sale of fractional shares will be deducted from the total proceeds of the whole transaction.
According to data compiled by Argaam, MetLife recently announced that creditors objecting the merger with Walaa can send their objection letters as of Jan. 28 throughout Feb. 27.
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