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Dec 2022

Saudi Arabia: SAMA approves merger between SABB Takaful and Walaa

Source: Middle East Insurance Review | Sep 2022

The Saudi Central Bank (SAMA) has approved the merger of SABB Takaful and Walaa Cooperative Insurance (Walaa), according to statements lodged by the two companies with Tadawul last month. The completion of the merger remains subject to other conditions, including obtaining other relevant regulatory approvals and the green light from shareholders.
 
Upon completion of the deal, SABB Takaful’s assets, liabilities and rights will be transferred to Walaa and the former will cease operations.
 
In February 2022, Walaa signed a binding merger agreement with SABB Takaful, with the companies agreeing to merge through a share swap transaction. Walaa will issue 0.6 shares against each issued share in SABB Takaful.
 
Based on the swap ratio, Walaa will increase its share capital by issuing 20.42m new ordinary shares with a nominal value of SAR10 ($2.70) per share to SABB Takaful’s entitled shareholders. Walaa will see its share capital jump to SAR850.58m, of which 24% will be held by SABB Takaful’s shareholders.
 
At the same time, Walaa has received approval from the Capital Market Authority to increase its capital in order to merge with SABB Takaful. Last month, Walaa revealed that its losses widened to SAR27m in 1H2022, compared to SAR13m in the same period last year. M 
 
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