Saudi Enaya starts creditors’ objection period for merger with Salama

Logo of Saudi Enaya Cooperative Insurance Co.

Saudi Enaya Cooperative Insurance Co. started the objection period for its creditors regarding the plnner merger with Salama Cooperative Insurance Co. The period runs from today, Dec. 3, until the end of Dec. 18.

In a statement to Tadawul, the company said any Enaya creditor has the right to object to the merger by sending a registered letter to the company’s head office.

The company clarified that filing an objection does not suspend the merger. However, if an objection is submitted, the merged company must settle the objecting creditor’s debt if it is due, or provide an adequate guarantee if it is not yet due.

A creditor who has notified the merged company of their objection and has not received payment (for due debt) or a sufficient guarantee (for debt not yet due) may file a claim with the competent judicial authority no less than 10 days before the date set for the merger resolution.

In such cases, the judicial authority may order repayment of the debt if it is due, or require a guarantee if it is not due.

If the authority determines that the merger would cause significant harm to the objecting creditor, and the merged or merging company cannot settle the debt or provide a sufficient guarantee, it may order the merger to be suspended or postponed, provided the decision is issued before the merger resolution becomes effective.

The company added that if the judicial authority does not rule on the creditor’s objection before the merger resolution takes effect, and later confirms the validity of the objection, it may issue a ruling to compensate the creditor for damages resulting from the merger.

Enaya stressed that the merger remains subject to several conditions that have not yet been fulfilled, including approval from the shareholders of both companies, noting that any material developments regarding the merger will be announced in due course.

According to Argaam data, Enaya and Salama signed a non-binding memorandum of understanding (MoU) in February 2025 to assess the feasibility of merging the two companies.

In June, the General Authority for Competition (GAC) issued a no-objection decision regarding the economic concentration resulting from the merger.

In August, the two companies entered into a binding merger agreement, under which Enaya will be merged into Salama, transferring all rights, obligations, assets and contracts to Salama. In return, Salama will issue 18.89 million ordinary shares to Enaya’s shareholders.

The merger and related matters were approved by the Insurance Authority (IA) on Nov. 16, 2025, while the Capital Market Authority's (CMA) approval was obtained on Dec. 1, 2025.