Saudi Arabia: SABB Takaful, Walaa sign binding merger agreement

Source: Middle East Insurance Review | Apr 2022

SABB Takaful has signed a binding merger agreement with Walaa Cooperative Insurance (Walaa), the insurers said in a statement posted on the Saudi Stock Exchange (Tadawul) last February. Upon completion of the merger transaction, Walaa shall become, by operation of law, the legal successor of the assets, liabilities, rights and obligations of SABB Takaful and SABB Takaful shall cease to exist.

Upon the merger agreement, subject to the approval of all relevant governmental authorities and both companies’ shareholders, Walaa will increase its share capital by issuing 20,418,619 new ordinary shares with a nominal value of SAR10 ($2.67) per share to SABB Takaful’s eligible shareholders based on the exchange ratio. The value of Walaa’s capital will accordingly become SAR850.6m, of which 24.01% will be held by SABB Takaful’s shareholders. M

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