Arabian Shield says merger with AlAhli Takaful takes effect

Logos of AlAhli Takaful and Arabian Shield Insurance

Arabian Shield Insurance Co. said the merger with AlAhli Takaful Co. (ATC) took effect, pursuant to which all the assets and liabilities of ATC will be transferred to Arabian Shield.  

The company said in a bourse filing that it will issue 23.85 million ordinary shares at a nominal value of SAR 10 each in favor of ATC shareholders by way of increasing paid-up capital from SAR 400 million to SAR 638.52 million and increasing the number of fully-paid shares from 40 million up to 63.85 million.  

Arabian Shield and ATC satisfied the merger conditions agreed upon between the two companies in the agreement and set out in the shareholder circular and the offer document issued by Arabian Shield with respect to the merger.  

As set out in the shareholder circular and offer document, the delisting of ATC’s shares, the listing of the consideration shares, and deposit of the same in the accounts of the eligible ATC shareholders will be completed within a period not exceeding the sixth trading period after this announcement.  

The required procedures relating to the amendment of Arabian Shield commercial register and the cancellation of ATC commercial register will be completed within the timeframe set out in the key dates and milestones timeline in the shareholder circular and offer document.   

If the exchange ratio calculation produces fractional shares, the resulting figure will be rounded down to the nearest whole number.  

The fractional shares will be aggregated and sold on Tadawul at market price at the time on behalf of the entitled shareholders of ATC.  

Any expenses in relation to the sale of fractional shares will be paid from the proceeds of such sale within 30 days from the merger date.  

In a separate statement, ATC announced that the creditor objection period expired on Jan. 11, and that it had not received any objections from its creditors during that period. 

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