The Saudi Capital Market Authority (CMA) on Monday has approved Gulf Union Cooperative Insurance Co.’s request to increase its capital to SAR 241.94 million from SAR 150 million by issuing 9.194 million ordinary shares to acquire all the shares of Al-Ahlia Insurance Co. through securities exchange.
The company's capital increase shareholder circular will be published within sufficient time before the extraordinary general assembly meeting, the authority said in a statement.
“The shareholder circular must include all relevant information that the shareholders need to know before making an informed decision when voting on the capital increase for the purpose described, including the increase in capital and risk factors”, the statement said.
The CMA resolution included the approval of the proposed offer timetable, as well as the approval of the publication of the offer document by Gulf Union Cooperative Co. to the Al-Ahlia Insurance Co. shareholders through securities exchange.
If the shareholders of Gulf Union Cooperative Co. approved the capital increase, and the shareholders of Al-Ahlia Insurance Co. accepted the offer in their extraordinary general assembly meetings, the new shares will be issued to Al-Ahlia Insurance Co.’s shareholders who are registered in the shareholders registry at the Securities Depository Center Company and the shares of Al-Ahlia Insurance Co. will be delisted from the Saudi Stock Exchange after the merger decision becomes effective.
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