Both insurers are finalizing other regulatory approvals, a step which will be followed by issuing the merger circular as well as the offer document to be approved by shareholders of both entities, the statement added.
The merger deal is subject to the approval of the extraordinary general meetings of both companies.
Related updates will be duly revealed, the statement added.
In August, Aljazira Takaful inked a binding merger agreement with Solidarity. The agreement will be implemented via a swap deal whereby Aljazira will issue 12.07 million new shares at SAR 10 each to Solidarity in exchange for all of its issued shares, with no cash payment in return, according to Argaam.
Aljazira Takaful, (the surviving corporation), will assume the integrated net assets and liabilities, of Solidarity, (the merged entity), and hence shares of the latter will be delisted from the bourse after completing the merger agreement.
Aljazira will issue 12.07 million new shares at SAR 10 each to Solidarity in exchange for all of its issued shares
Share par value
SAR 10 a share
A 0.483 share in Aljazira Takaful for 1 share in Solidarity; or 1 share in Aljazira Takaful for 2.07 shares in Solidarity
New entity's capital
The new entity will be capitalized at SAR 470.66 million (Aljazira Takaful is currently capitalized at SAR 350 million).
New entity's share capital
47.07 million shares (Aljazira Takaful has a share capital of 35 million shares).
Ownership of Solidarity's shareholders at merger
Ownership of Aljazira Takaful's shareholders after concluding the merger agreement