Saudi Enaya shareholders reject merger with Salama

Saudi Enaya shareholders reject the terms of the merger agreement with Salama

Saudi Enaya Cooperative Insurance Co.’s shareholders refused approval for the merger offer submitted by Salama Cooperative Insurance Co. (Salama).

The decision came during the extraordinary general meeting (EGM) held on Feb. 1, Saudi Enaya said in a statement to Tadawul.

Shareholders rejected the terms of the merger agreement, and did not authorize the board of directors, or any person authorized by the board, to issue any decision or take any action that may be necessary to implement any of the above-mentioned decisions.

On Jan. 4, Saudi Enaya postponed its planned EGM due to lack of quorum, Argaam reported.

The company had previously confirmed that the merger with Salama was pursued to regularize the company’s legal status and avoid potential challenges that could arise if the merger was not completed.

Earlier, Saudi Enaya’s shareholders had rejected a merger with United Cooperative Assurance Co. in December 2023 and turned down a capital increase through a SAR 150 million rights issue in December 2024.

Meanwhile, Salama’s shareholders recently approved a 62.98% capital increase from SAR 300 million to SAR 488.94 million, through the issuance of 18.89 million new shares. Under the merger terms, Saudi Enaya shareholders would receive 0.8215 Salama shares for each Saudi Enaya share.