Aljazira Takaful, Solidarity ink binding merger deal

Aljazira Takaful Taawuni Co. inked a binding merger agreement with Solidarity Saudi Takaful Co. on August 23, 2020, the insurers said in two separate bourse filings today.

The agreement will be implemented via a swap deal as Aljazira will issue 12.07 million new shares at SAR 10 each to Solidarity in exchange for all of its issued shares, with no cash payment in return.

Aljazira Takaful, (the surviving corporation), will assume the integrated net assets and liabilities, of Solidarity, (the merged entity), and hence shares of the latter will be delisted from the bourse after completing the merger agreement.

The swap ratio will be calculated as follows: A 0.483 share in Aljazira Takaful for 1 share in Solidarity; or 1 share in Aljazira Takaful for 2.07 shares in Solidarity.

The new entity will be capitalized at SAR 470.66 million (47.07 million shares). Aljazira Takaful is currently capitalized at SAR 350 million (35 million shares).

Ownership of Solidarity shareholders at merger stood at 25.64%, while ownership of Aljazira Takaful shareholders hit 74.36% after concluding the merger agreement.