SABB Takaful issues board’s circular on merger with Walaa

Logos of Walaa Insurance and SABB Takaful

SABB Takaful Co. announced today, Aug. 17, the board of directors’ circular publication regarding the merger with Walaa Cooperative Insurance Co.

The circular was prepared as per the requirements of Article 39 of the merger and acquisition regulations issued by the Capital Market Authority (CMA), which includes SABB Takaful’s board’s opinion of the offer given to the shareholders of SABB Takaful on the merger.

In addition, independent advice was provided to the SABB Takaful’s board by Saudi Fransi Capital, which was appointed as the financial advisor to the merger transaction.

Walaa announced, on Aug. 15, publishing the shareholders’ circular and the offer document for the shareholders of SABB Takaful, along with the merger timeline.

The CMA approved, on Aug. 10, the request from Walaa Insurance to increase its capital from SAR 646.39 million to SAR 850.58 million by issuing 20.42 million ordinary shares.

The capital increase is to merge SABB Takaful into Walaa Insurance and transfer all of SABB Takaful’s assets and liabilities to Walaa through a share swap transaction.

Walaa Insurance signed a binding merger agreement with SABB Takaful on Feb. 24, reflecting the agreement of both companies to merge through a share swap transaction.

Walaa will issue 0.6 nominal shares against each issued share in SABB Takaful for the benefit of eligible shareholders.

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