Shareholders of Al-Ahlia Insurance Co. will vote on the merger with Gulf Union Cooperative Insurance Co. in the extraordinary general meeting (EGM) scheduled for Nov. 2, the company said in a bourse statement on Sunday.
When the planned merger is approved, Gulf Union will issue 7.95 million new ordinary shares at SAR 10 par value each, to buy all issued shares of Al-Ahlia at a total par value of SAR 79.47 million. .
Voting will include the approval of the required regulatory procedures, as well as the merger terms and conditions, approved on June 4, 2020.
Shareholders will also vote on authorizing Al-Ahlia’s board of directors to take any decision necessary in this regard.
Al-Ahlia signed, on June 4, a binding merger agreement with Gulf Union to acquire all its shareholders’ issued shares through share swap without any cash payment, Argaam reported.
Upon the merger completion, Al-Ahlia shareholders will own 34.63% of Gulf Union, while Gulf Union shareholders will own 65.37% of the company following the capital hike.
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