Gulf Union Alahlia, GGI shareholders to vote on merger on March 27

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

Gulf General Cooperative Insurance Co. (GGI) and Gulf Union Alahlia Cooperative Insurance Co. will vote on the proposed merger between the two companies, during their extraordinary general meetings (EGM), held on March 27.

In a statement released today, March 2 on Tadawul, GGI announced that the agenda includes a vote on the offer submitted by Gulf Union Alahlia to GGI’s shareholders.

The offer aims to merge GGI into Gulf Union Alahlia by issuing 22.82 million new shares in Gulf Union Alahlia, resulting in the dissolution of GGI. The merger will be carried out in accordance with the relevant regulatory requirements and the terms and conditions of the merger agreement signed between the two companies.

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In a separate statement, Gulf Union Alahlia stated that its agenda includes a vote on increasing the company’s capital through the issuance of 22.82 million new shares. This issuance will be at an exchange ratio of 0.76 shares in Gulf Union Alahlia for each share in GGI, in accordance with the terms and conditions of the merger agreement.

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According to data available on Argaam, the Capital Market Authority (CMA) approved Gulf Union Alahlia's request to increase its capital from SAR 458.95 million to SAR 687.18 million, through issuing 22.82 million ordinary shares.

The capital hike is for a merger with GGI, under which the latter's assets and liabilities would be transferred to Gulf Union Alahlia through a securities exchange offer.

The two Saudi insurance firms signed on Dec 9, 2024, a binding merger agreement. The deal entails transferring all of GGI’s rights, obligations, assets, and contracts to Gulf Union Alahlia.

In return, Gulf Union Alahlia will issue 22.82 million ordinary shares at a nominal value of SAR 10 each to GGI shareholders.

Meanwhile, GGI shareholders will receive a 0.76 share in Gulf Union Alahlia for each share they hold.

GGI previously announced the start of the creditor objection period regarding its merger with Gulf Union Alahlia. The period began on Feb. 25 and will end at the close of March 12.