Gulf Union shareholders approve merger with Al-Ahlia via capital top-up of SAR 229.5 mln

Shareholders of Gulf Union Cooperative Insurance Co. approved the terms and conditions of the company’s merger deal with Al-Ahlia Insurance Co., signed on June 4, during the extraordinary general meeting (EGM) held on Oct. 5, 2020.

The merger will take place through the issue of 0.65 shares in Gulf Union for each share in Al-Ahlia, the company added in a bourse statement.

They also approved increasing capital from SAR 150 million to SAR 229.47 million.

Shareholders also approved amending the company’s name to Gulf Union Al-Ahlia Cooperative Insurance Co. upon completion of the merger.

Meanwhile, they authorized the board of directors to take any decision necessary with respect to the abovementioned agenda items, the statement added.

The insurer also indicated that the merger will be effective after fulfilling all terms and conditions, including the creditors' objection period, in accordance with the merger agreement and the provisions of Article (193) of the Companies Law as indicated in the shareholders’ circular.

The Saudi Capital Market Authority (CMA) approved on Aug. 31 Gulf Union’s request to increase its capital from SAR 150 million to SAR 229.47 million by issuing 7.95 million ordinary shares to merge with Al-Ahlia Insurance Co., Argaam reported.