Saudi Arabia: Walaa to take over MetLife AIG ANB via share swap
Source: Middle East Insurance Review | Nov 2019
Walaa Cooperative Insurance has signed a binding merger agreement with MetLife AIG ANB to buy the entire shares of the latter by offering a share swap without paying cash. The acquisition would be made through the issue of new ordinary shares to MetLife AIG ANB shareholders, the company said in a statement.
Walaa currently does not own any shares in MetLife AIG ANB nor does it have an option to purchase any shares in MetLife AIG ANB.
The binding merger agreement follows a non-binding MoU signed on 18 June by Walaa and MetLife AIG ANB to evaluate a potential merger between the two companies.
MetLife AIG ANB said that its accumulated losses as at 31 July 2019 stood at SAR180m ($48m) representing 20.2% of its capital.
The company said that one reason for this financial position was a decline in GWP. Last year, the company reported GWP of SAR168.8m, a 52% plunge from SAR354.9m in 2017. For the first six months of this year, GWP fell by 64% to SAR45.6m compared to the first half of 2018. M
SAR1 - $0.27