Walaa, SABB Takaful shareholders approve merger

Logos of Walaa Insurance and SABB Takaful

Shareholders of Walaa Cooperative Insurance Co. and SABB Takaful Co. approved the proposed merger by issuing 0.6 share in Walaa for every one share in SABB Takaful, during the extraordinary general meetings (EGM) held on Sept. 15, the insurers said in bourse statements.

SABB Takaful will be dissolved as a result.

Walaa’s capital will be increased from SAR 646.40 million to SAR 850.58 million, pursuant to the merger agreement terms.

Meanwhile, shareholders delegated Walaa’s board of directors, or any person authorized by the board, to adopt any resolution or take any action as may be necessary to implement any of the above resolutions.

In February, Walaa and SABB Takaful signed a binding merger agreement, whereby the former will buy SABB Takaful’s entire shares through a share swap deal without any cash consideration, Argaam earlier reported.

Earlier in August, the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) approved their prospective merger.

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