Solidarity, Aljazira Takaful consider merger
On June 27, 2019, Solidarity Saudi Takaful Company and Aljazira Takaful Taawuni Company signed a non-binding memorandum of understanding (MoU) to evaluate a potential merger.
|Deal Value||Method of Finance||Type||Status|
The First Party
|Aljazira Takaful Taawuni Company - Jazira Takaful|
|*Market Cap (Million SAR)||823.90|
The Second Party
|Solidarity Saudi Takaful Co. - Solidarity|
|*Market Cap (Million SAR)||355.00|
- *Based on the latest data available
|Expected date for Completion||26-02-2021|
Should the two insurers initiate the merger deal, it will be via share swap, where Aljazira Takaful Company will issue new shares to Solidarity in exchange for all of its issued shares.
The two companies have initially agreed that they will base the valuation on equity book value (after any post due diligence adjustments), while the swap ratio will be on the respective adjusted equity book value per share at a mutually agreed date.
* The memorandum of understanding (MoU) is valid until a final agreement is reached or after the end of Q1 2020, whichever comes first.