SABB Takaful, Walaa shareholders to vote on merger on Sept. 15

Logos of Walaa Insurance and SABB Takaful

Shareholders of SABB Takaful Co. and Walaa Cooperative Insurance Co. will vote on the proposed merger by issuing 0.6 share in Walaa for every one share in SABB Takaful, during the extraordinary general meetings (EGM) scheduled for Sept. 15, the companies said in separate bourse statement.

Walaa shareholders will vote on increasing the company’s capital from SAR 646.40 million to SAR 850.58 million, pursuant to the merger agreement terms. These changes will take effect once the merger is complete.

SABB Takaful shareholders will also vote on Walaa’s bid through issuing 20.42 million new shares in Walaa in return for the entire capital of SABB Takaful. Accordingly, SABB Takaful will cease to exist.

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) approved their prospective merger.

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