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