Riyadh – Al Sagr Cooperative Insurance Company has penned a non-binding memorandum of understanding (MoU) with Gulf Union Al Ahlia Cooperative Insurance Company to evaluate a potential merger between the two companies.
The two insurers will conduct operational, technical, financial, legal, and actuarial due diligence and engage in non-binding discussions on the terms and conditions of the potential merger, according to a bourse statement on Tuesday.
In the event of signing the binding merger agreement and obtaining the regulators' and shareholders’ general assembly approvals, the potential merger will be implemented by way of share-for-share, where Gulf Union will issue new shares to the Al Sagr Cooperative’s shareholders in exchange for all issued shares of Al Sagr following merger completion.
Alinma Investment was hired as Al Sagr Cooperative’s Financial Advisor for the proposed merger.
Al Sagr Cooperative added it will announce any material developments regarding the proposed merger as per the relevant laws and regulations.
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