Salama, Saudi Enaya sign binding merger agreement

Logos of Salama Cooperative Insurance Co. and Saudi Enaya Cooperative Insurance Co.

Salama Cooperative Insurance Co. (Salama) inked, on Aug. 14, a binding merger agreement with Saudi Enaya Cooperative Insurance Co. (Saudi Enaya), according to a statement to Tadawul.

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Under the agreement, Saudi Enaya will be merged into Salama, with the transfer of all of the former’s rights, obligations, assets, and contracts to the latter. In return, Salama will issue 18.89 million ordinary shares at a nominal value of SAR 10 per share in favor of Saudi Enaya’s shareholders.

As a result of the merger transaction, Saudi Enaya’s shares will be delisted, given that the company will cease to exist and all rights and obligations will be transferred to Salama, based on the agreed swap ratio. Salama’s closing share price was SAR12.4 on Aug. 13, 2025 - the last trading day prior to signing the merger pact.

Saudi Enaya’s shareholders of record at the end of the second trading day following the merger resolution will receive 0.8215 Salama shares for each share held.

Saudi Enaya’s share, for the merger transaction, will be valued at approximately SAR 6.62 per share, implying a total equity value of around SAR152.25 million. This valuation represents a 9.53% discount compared to Saudi Enaya’s closing price of SAR 9.3 per share on Aug. 13, 2025.

Salama stated that the total expected costs of the merger transaction will be included in the shareholder circular, which will be published after obtaining the required regulatory approvals.

According to data available on Argaam, Enaya and Salama had signed a non-binding memorandum of understanding (MoU) in February to evaluate the feasibility of merging the two companies. In June, they obtained the approval of the General Authority for Competition regarding the economic concentration resulting from the proposed merger.