The Capital Market Authority has approved the proposed capital increase of Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MedGulf) by 31.58% to SAR1.38bn ($368m) from SAR1.05bn, the insurers disclosed in separate statements lodged with the Saudi Exchange.
The approval moves the merger process closer to realisation.
The capital increase is around SAR331.6m and relates to the issuance by MedGulf of 33.16m ordinary shares with a nominal value of SAR10 per share, for the purpose of merging with Buruj Cooperative Insurance Company through a share swap. Buruj shareholders will receive approximately 1.1052 shares of MedGulf for each share they own in Buruj.
Merger agreement
MedGulf signed a binding merger agreement with Buruj in July 2025, under which Buruj would be merged into MedGulf.
The two companies announced last January that the General Authority for Competition had issued a no-objection to the proposed merger between the two companies. They also announced earlier this month that the Insurance Authority had approved the deal.
The planned merger remains subject to a number of other conditions, including obtaining the approval of MEDGULF and Buruj’s shareholders.