Saudi Arabian insurers Al Ahlia and Gulf Union are to merge, increasing the paid up capital of Gulf Union to SAR 229 million ($61 million) from SAR 150 million ($40 million).
Gulf Union Cooperative Insurance Company made the announcement in a statement to Tadawul, the Saudi Stock Exchange, following the expiration of the creditor objection period today (Sunday).
The assets and liabilities of Al Ahlia Cooperative Insurance Company will be transferred to Gulf Union in consideration for Gulf Union issuing 7,947,464 ordinary shares with a nominal value of SAR 10 per share in favour of Al Ahlia shareholders, the company said in its statement.
The merger represents an increase in Gulf Union shares from 15 million to 22,947,464.
Listing of existing Al Ahlia shares will be cancelled within six trading sessions of the announcement, Gulf Union said.
In a separate announcement, Tadawul said trading is suspended on Al Ahlia shares, effective today, following Al Ahlia's acceptance of an offer to merge with Gulf Union.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
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