IA approves Gulf Union Alahlia, Gulf General merger

IA approves Gulf Union Alahlia, Gulf General merger deal

Logo of Gulf Union Alahlia Cooperative Insurance Co. and Gulf General Cooperative Insurance Co. (GGI)

Saudi Arabia’s Insurance Authority (IA) approved on Feb. 11 the merger between Gulf Union Alahlia Cooperative Insurance Co. and Gulf General Cooperative Insurance Co. (GGCI) The approval covers the merger deal and related matters.

Two separate statements on Tadawul today said that the merger deal is contingent on several outstanding conditions, including approvals from the Capital Market Authority (CMA) and the shareholders of both companies.

For more news and details on M&As

Both companies stated that they will disclose any material developments on the merger deal in due course.

According to Argaam data, Gulf Union Alahlia and GGCI concluded a binding merger agreement on Dec. 9, 2024.

The merger entails transferring all of GGCI's rights, obligations, assets, and contracts to Gulf Union Alahlia. In return, Gulf Union Alahlia will issue 22.82 million ordinary shares with a nominal value of SAR 10 per share to GGCI's shareholders.

GGCI shareholders will receive 0.76 share in Gulf Union Alahlia for each share they hold.

Key Merger Details
Latest Updates	Signing a binding merger agreement
Method	Gulf Union Alahlia to acquire all of GGCI shares
Compensation	Issuance of new shares to GGCI shareholders
Swap Ratio	GGCI shareholders will receive 0.76 share in Gulf Union Alahlia for each share they hold
New Entity	Gulf Union Alahlia
GGCI Post-Merger	GGCI will be legally dissolved, with all its shares canceled, and its rights, liabilities, assets, and contracts transferred to Gulf Union Alahlia
Gulf Union Alahlia’s Pre-Merger Capital	SAR 458.95 mln
Gulf Union Alahlia’s Post-Merger Capital	SAR 687.18 mln
Increase percentage	49.73%
Gulf Union Alahlia’s New Share Price	SAR 15.92
GGCI Share Price for Merger Purpose	SAR 12.11 (up 14.04% from last closing price of SAR 10.62)
Total Value of GGCI Shares for Merger Purpose	SAR 363.35 mln
Shareholders' Share of Gulf Union Alahlia Post-Merger	66.79% of the merging company’s capital
Shareholders' Share of GGCI Post-Merger	33.21% of the merging company’s capital

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