Logos of Arabian Shield Cooperative Insurance Co. and Alinma Tokio Marine Co.
Arabian Shield Cooperative Insurance Co. and Alinma Tokio Marine Co. obtained, on Sept. 11, the approval of the Saudi Central Bank (SAMA) on their merger.
In two separate statements to Tadawul, the insurers said the merger is pending additional conditions, including the approvals of the Capital Market Authority (CMA), the Saudi Exchange (Tadawul), and the extraordinary general meetings (EGMs) of both companies.
In June, Arabian Shield and Alinma Tokio Marine signed a binding merger agreement through a share swap. They agreed that Arabian Shield will issue 0.53 ordinary share for every share issued in Alinma Tokio Marine.
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Merger Details |
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Method of Merger |
Alnima Tokio Marine will merge into Arabian Shield, and all its assets and liabilities will transfer to the latter. |
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Merger Value |
If the merger is approved by the regulatory authorities, and shareholders of both companies and upon the expiry of creditors' objection period, Arabian Shield will increase its capital to SAR 798.15 million from SAR 638.52 million by issuing 15.96 million new ordinary shares |
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Nominal Value |
SAR 10 per share |
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Swap Ratio |
Issuance of 0.53 share in Arabian Shield for every share in Alinma Tokio Marine |
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Capital of New Entity |
SAR 798.15 mln |
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Arabian Shield Ownership Post- Merger |
80% |
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Alinma Tokio Marine Ownership Post- Merger |
20% |
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