The boards of both insurers had signed the merger agreement on May 10, under which Gulf Union will acquire the entire share capital of Al Ahlia, by issuing nine million new shares to Al Ahlia’s shareholders.
The potential merger was endorsed by the Saudi Arabian Monetary Authority (SAMA), which oversees the Kingdom’s insurance sector.
Gulf Union’s extraordinary general meeting on Jan. 6, 2019 will discuss the capital increase to SAR 241.94 million from SAR 150 million by issuing 9.194 million ordinary shares to acquire all the shares of Al Ahlia through a share swap deal.
Al Ahlia’s shares will be delisted on March 3, 2019, upon the approval of both companies on the planned merger.
Terms of planned merger
Gulf Union’s capital
SAR 150 mln (15 million shares)
Al Ahlia’s Capital
SAR 160 mln (16 million shares)
Gulf Union’s book value as on Dec. 31, 2016
SAR 146.6 million
Al Ahlia’s book value on FY
SAR 104.4 million
Gulf Union’s new entity stake
Al Ahlia’s new entity stake
Issued shares for Al Ahlia
9.19 million ordinary shares
Share swap percentage
The planned merger is subject to amendments, based on the due-diligence
Gulf Union’s post-merger board structure
The board will comprise nine members; six to be named by Gulf Union and three by Al Ahlia. Abdul Aziz Ali Al-Turki will the chairman of the board.
Gulf Union’s Ownership Structure
Gulf Union Insurance and Projects Management Holdings