ACIG, Amana Insurance sign non-binding MoU on potential merger

ACIG and Amana Insurance logos

Allied Cooperative Insurance Group (ACIG) and Amana Cooperative Insurance Co. signed, on Sept. 3, a non-binding memorandum of understanding (MoU) to evaluate a potential merger, the insurers said in separate statements to Tadawul.

Both companies will conduct operational, technical, financial, legal, and actuarial due diligence and start non-binding discussions on the terms and conditions of the potential merger. ACIG and Amana agreed in principle on conducting the evaluation using the equity book value methodology.

The MoU would expire if the companies enter into a merger agreement or 12 months from the MoU signing date, whichever is earlier. ACIG and Amana will continue to announce any material developments regarding the proposed merger pursuant to the relevant laws and regulations. Meanwhile, the two insurance services providers will continue with their normal operations until the completion of the proposed merger, the statements added.

The proposed merger is subject to the completion of due diligence to the parties’ satisfaction, agreement on final terms and conditions of the merger agreement, as well as the approval of the competent authorities and the general assemblies of ACIG and Amana. The MoU does not mean that the proposed merger will necessarily lead to a final agreement.

New announcements will be made, when necessary, ACIG and Amana added.

Last January, shareholders of Saudi Enaya Cooperative Insurance Co. rejected a merger offer made by Amana, Argaam earlier reported.

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