Logo of Gulf Union AlAhlia Cooperative Insurance Co.
Gulf Union AlAhlia Cooperative Insurance Co. announced its firm intention to make an offer to the shareholders of Al Sagr Cooperative Insurance Co. and continue the merger deal.
In a statement on Tadawul, the company pointed out that all conditions necessary for declaring its firm intent for the share-swap-based acquisition have been met as per the provisions of the merger agreement, and in compliance with Article (17) of the Merger and Acquisition Regulations.
There is no person acting in agreement with Gulf Union AlAhlia in connection with the transaction, the insurer noted, affirming that it does not own any shares in Al-Sagr Insurance, nor does it have the option to purchase any of its shares.
Gulf Union AlAhlia did not obtain any irrevocable commitment from any party to vote on approving the transaction in the relevant extraordinary general assembly.
Moreover, there are no compensation arrangements involving any of the two insurers or any person acting in agreement with Al-Sagr Insurance, in relation to the latter’s shares, the statement added.
Gulf Union AlAhlia’s financial advisor, Al Jazeera Capital, is not obligated to provide confirmation on the company’s availability of sufficient resources to complete the transaction, given that the value of the transaction or any part thereof will not be paid in cash.
The company called for reviewing the merger announcement for more information about the deal, including the deal structure, provisions, terms and conditions as well as the agreed swap rate, and the steps required for the merger completion, in addition to the necessary regulatory approvals.
According to data compiled with Argaam, the insurers, Gulf Union AlAhlia Cooperative Insurance Co. and Al Sagr Cooperative Insurance Co. recently signed a binding merger agreement.
Both companies will merge through a share swap deal, whereby Gulf Union AlAhlia will issue 1.152 nominal shares against each issued share in Al Sagr for the benefit of eligible shareholders on the effective date of the deal, in exchange for transferring the assets and liabilities of Al-Sagr to the Gulf Union AlAhlia without paying any cash.
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