ATC, Gulf Union receive no-objection letter from SAMA on merger deal

Logos of ATC and Arabian Shield Cooperative Insurance Co.

Alahli Takaful Co. (ATC) and Arabian Shield Cooperative Insurance Co. received, on Oct. 26, a no-objection letter from the Saudi Central Bank (SAMA) on their merger deal.

Both companies will work on finalizing the remaining paperwork, they said in separate bourse statements, indicating that the completion of the deal depends on obtaining all regulatory approvals in addition to the approvals of the extraordinary general assembly of each company.

In July, ATC and Arabian Shield signed a binding memorandum of understanding (MoU) for merger.

Merger Details
Method of Merger	By merging ATC with Arabian Shield and transferring all of ATC’s assets and liabilities to Arabian Shield.
Merger Value	If the merger has been approved by all relevant government authorities and EGMs of both companies, Arabian Shield will increase its share capital from SAR 400 mln to SAR 638.52 mln by issuing 23.85 mln new ordinary shares.
Nominal Value	SAR 10 per share
Swap Ratio	Issuance of 1.43 shares of Arabian Shield against one share in ATC
Capital of Merged Entity	SAR 638.52 mln
Ownership of Arabian Shield Shareholders Upon Merger Completion	62.64%
Ownership of ATC Shareholders Upon Merger Completion	37.36%

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