Logos of Gulf Union Alahlia Cooperative Insurance Co. and Gulf General Cooperative Insurance Co. (GGI)
Gulf General Cooperative Insurance Co. (GGI) announced the beginning of the creditor objection period related to its merger with Gulf Union Alahlia Cooperative Insurance Co..
The objection period starts today, Feb. 25, and will continue until March 12.
Any creditor of GGI has the right to object to the merger deal by sending an email or a registered letter to the company's head office in Jeddah (Postal Code: Jeddah 21441, PO Box 1866), the company said in a statement to Tadawul.
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Meanwhile, GGI explained that objections will not hinder the merger process. In case of objection, the merged company should fulfill the creditor’s debt or provide a sufficient guarantee. Otherwise, the objecting creditor will take the necessary legal proceedings 10 days before the final decision on merger.
In a separate statement, Gulf Union Alahlia announced publishing the shareholders' circular and the offer document for GGI’s shareholders, as well as the merger timeline.
Both insurance firms are required to disclose the merger deal according to Article 227 of the new Companies Law. Any creditor may object within 15 days from the disclosure date.
Any other material updates will be duly announced, GGI and Gulf Union Alahlia added.
On Feb. 24, the Capital Market Authority (CMA) approved GGI’s application to raise its capital from SAR 458.95 million to SAR 687.18 million, through issuing 22.82 million ordinary shares to complete the merger.
GGI’s assets and liabilities would be transferred to Gulf Union Alahlia through a share swap offer.
On Dec. 9, 2024, both companies agreed on binding merger agreement. The deal entails transferring GGI’s entire rights, obligations, assets, and contracts to Gulf Union Alahlia.
Meanwhile, GGI shareholders will receive a 0.76 share in Gulf Union Alahlia for each share they hold.
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