UCA shareholders approve merger deal, Enaya EGM rejects

Logos of United Cooperative Assurance Co. (UCA) and Saudi Enaya Cooperative Insurance Co.

United Cooperative Assurance Co.’s (UCA) shareholders approved the proposed merger with Saudi Enaya Cooperative Insurance Co. and transferring latter’s assets and liabilities through a share swap offer, the insurer said in a statement to Tadawul. 

On the other hand, Enaya shareholders rejected the merger proposal submitted by UCA, according to a separate Tadawul statement. 

The merger was subject to approval of the shareholders of both the companies. It will not take place unless it is approved by Enaya shareholders, UCA said. 

Meanwhile, UCA shareholders authorized the board of directors, or any person authorized, to issue any decision or take any action that may be necessary to implement any of the above-mentioned decisions. 

On May 31, UCA and Enaya signed a binding merger agreement, Argaam reported earlier. 

The insurance services providers agreed to merge through a share swap deal, whereby UCA would issue 0.837 ordinary share for each issued share in favor of Enaya’s eligible shareholders. 

Enaya’s eligible shareholders are those who own shares issued in Enaya on the effective date of the merger deal. 

In January 2022, Enaya’s shareholders disapproved a merger proposal with Amana Cooperative Insurance Co.