Arabian Shield affirms plans for merger with Alinma Tokio

Logos of Arabian Shield Cooperative Insurance Co. and Alinma Tokio Marine Co.

Arabian Shield Cooperative Insurance Co. announced its firm intention to make an offer to the shareholders of Alinma Tokio Marine Co. and to proceed with the merger, according to a statement on Tadawul.

This came after fulfilling the requirements for announcing a firm intention to make an offer in accordance with the provisions of the merger agreement and pursuant to Article 17 of the Merger and Acquisition Regulations.

As of the date of this announcement, no person is acting in conjunction with Arabian Shield on the merger. The latter does not own any shares in Alinma Tokio or relish options to purchase such shares, the statement noted.

Arabian Shield did not receive any irrevocable undertakings from any party to vote in favor of the merger at the relevant extraordinary general assembly and there are no indemnity arrangements in relation to the shares of Alinma Tokio involving Arabian Shield, Alinma Tokio or any person acting in conjunction with the latter.

Arabian Shield’s financial adviser, AlJazira Capital, is not bound to provide a confirmation that Arabian Shield has sufficient resources to satisfy the completion of the merger. This is given that the consideration payable by the company does not include cash consideration in any respect.

According to data compiled by Argaam, Arabian Shield and Alinma Tokio signed, in June, a binding merger agreement through a share swap. They agreed that Arabian Shield will issue a 0.53 ordinary share for every share issued in Alinma Tokio. 

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