Saudi Arabia: United Cooperative to take over Saudi Enaya Cooperative

Source: Middle East Insurance Review | Jul 2023

United Cooperative Assurance has signed a binding merger agreement with Saudi Enaya Cooperative Insurance.

The agreement, signed on 31 May 2023, follows the signing on 12 June 2022 of a non-binding memorandum of understanding by the two parties to evaluate a potential merger between them, according to statements filed with the Saudi stock exchange, Tadawul.

Under the merger agreement, both companies will merge through a share swap transaction. No cash consideration will be paid.

United will increase its share capital by issuing 19.2m new ordinary shares with a nominal value of SAR10 per share to Enaya’s entitled shareholders based on the exchange ratio. The new shares will represent 32.5% of the post-merger issued capital of United.

United’s share capital will grow to become SAR592.6m consisting of 59m ordinary shares. Enaya’s shares listed on the Tadawul stock exchange will be subsequently cancelled.

This is the sixth merger in the Saudi insurance sector since 2019, which at present comprises 27 insurers. The authorities are encouraging insurers to merge to form stronger institutions. M

Comment | Print

Name*

Email*

Comment*

Code Verification*

Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.