Gulf Union Alahlia EGM approves merger; Al Sagr shareholders deny

Logos of Gulf Union Alahlia Cooperative Insurance Co. and Al Sagr Cooperative Insurance Co.

Shareholders of Gulf Union Alahlia Cooperative Insurance Co. approved the merger deal with Al Sagr Cooperative Insurance Co., through issuing 16.12 million ordinary shares, during the extraordinary general meeting (EGM) held on Aug. 30, the insurer said in a statement to Tadawul.

The deal also includes transferring all Al Sagr's assets and liabilities to Gulf Union Alahlia through a share swap.

The merger will not finalize until the shareholder approval from Al Sagr, the statement noted.

Meanwhile, Gulf Union Alahlia's shareholders approved the board's recommendation to increase capital from SAR 458.95 million to SAR 620.19 million by issuing 16.12 million ordinary shares, representing 35.13% of the total current capital. 

According to the proposed merger deal, Gulf Union AlAhlia will issue 1.15 nominal shares against each share owned by shareholders in Al Sagr. 

According to the proposed merger deal, Gulf Union AlAhlia will issue 1.15 nominal shares against each issued share in Al Sagr for the benefit of eligible shareholders on the effective date of the deal.

New shares will be listed on Tadawul and allocated to eligible Al Sagr shareholders, within no less than the third trading day after the EGM approval and no more than the sixth trading period after both companies publish the shareholder approvals for the merger deal.

Gulf Union Alahlia's shareholders also approved changing the company name to “Gulf Falcon Cooperative Insurance”, after the merger.

Separately, Al Sagr shareholders disapproved Gulf Union AlAhlia’s merger proposal, as per Articles (225), (227), (228) and (229) of the Companies law, the insurer said in a statement to Tadawul.

According to data compiled by Argaam, Gulf Union Cooperative Insurance Co. amended its name to Gulf Union Alahlia Cooperative Insurance Co., following its merger with Al-Ahlia for Cooperative Insurance Co. in December 2020.

In 2018, Al Sagr Insurance canceled the MoU with Walaa Insurance Cooperative Co. regarding a potential merger, as it was deemed unfeasible.

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