Buruj: Creditor objects to merger with MEDGULF, confirms debt of SAR 770,000

Buruj says the planned merger with MEDGULF will not be affected or halted by the creditor's objection

Buruj Cooperative Insurance Co. said the creditors' objection period on the proposed merger with The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) ended on Oct. 9.

During the period, Buruj received an objection from one of its creditors and the value of the debt was confirmed for approximately SAR 770,000, the insurer said in a statement to Tadawul.

Payment measures will be taken in the coming weeks in accordance with applicable legal requirements. The merger will not be affected or halted as a result of such objection, the statement added.

The merger is subject to several other conditions, most importantly the approval of the shareholders of both companies.

Buruj will announce any material developments related to the merger transaction as it occurs.

According to data available on Argaam, MEDGULF and Buruj will hold their respective extraordinary general assemblies on Oct. 23 to vote on the planned merger.

Buruj EGM will vote on the offer submitted by MEDGULF on the merger that will result in the dissolution of Buruj.

MEDGULF shareholders will vote on increasing the company’s share capital for the purpose of the merger.