Salama EGM approves capital increase for merger with Enaya 

Salama’s shareholders approved capital increase for merger with Enaya

Salama Cooperative Insurance Co.'s shareholders approved a 62.98% capital increase to SAR 488.94 million from SAR 300 million, at an extraordinary general meeting (EGM) held on Jan. 4. 

In a statement to Tadawul, Salama said it will issue 18.894 million new ordinary shares to shareholders of Saudi Enaya Cooperative Insurance Co. as part of the proposed merger, based on a swap ratio of 0.821 Salama share for each Enaya share.

Shareholders also approved all other agenda items, including authorizing Salama’s board of directors, or any person delegated by the board, to take all necessary actions to implement the resolutions.

Completion of the merger requires approval from both companies’ shareholders. 

Once approved, Salama will issue new shares to eligible Enaya shareholders.

The two companies signed a memorandum of understanding (MoU) in February 2025 to assess the merger’s feasibility. In June, the General Authority for Competition cleared the economic concentration, according to Argaam data.

A binding merger agreement was signed in August, under which Enaya will be merged into Salama. The Insurance Authority greenlit the merger and related matters on Nov. 16, followed by the Capital Market Authority’s (CMA) approval on Dec. 1.