Al-Ahlia Insurance postpones EGM on lack of quorum

Al-Ahlia Insurance Co. postponed its first and second extraordinary general assembly meetings (EGMs), slated for Monday, Oct. 5, due to lack of quorum, the company said in a bourse statement.

The firm will announce a new date for the meeting after obtaining the required regulatory approvals, the statement added.

In case of merger approval from shareholders at the third EGM date, new shares of Gulf Union will be issued as negotiable securities for eligible shareholders according to the shareholder registry of Al-Ahlia on the date of enforcement of the merger decision.

Shares will be deposited in the portfolios of Al-Ahlia shareholders at one share in Gulf Union for every 1.55 shares held in Al-Ahlia, the statement added.

After the merger, Al-Ahlia will be fully owned by Gulf Union and its shares will be delisted from the bourse.

Meanwhile, Gulf Union will be considered as a legal successor to Al-Ahlia, the statement said, adding that the procedures for delisting from the commercial registry in the Ministry of Commerce and Investment will begin once the creditor objection period ends.

Al-Ahlia will continue to exist as a subsidiary, wholly-owned by Gulf Union, until the commercial registry is canceled in accordance with the provisions of the Companies Law.

According to the data compiled by Argaam, Al-Ahlia shareholders rejected the merger proposal submitted by Gulf Union in February 2019, and the new binding merger agreement was signed in June 2020.