Saudi Arabia's Capital Markets Authority (CMA) approved Gulf Union Alahlia Cooperative Insurance Co.'s request to increase its capital from SAR 458,949,280 to SAR 687,181,550 by issuing 22,823,227 ordinary shares to merge Gulf General Cooperative Insurance Co. into Gulf Union Alahlia through a securities exchange offer, with all Gulf General assets and liabilities to be transferred to Gulf Union Alahlia. The decision also approves the proposed offer timetable and allows publication of (i) a shareholder circular to Gulf Union Alahlia shareholders on the capital increase and (ii) an offer document to Gulf General shareholders on the exchange offer, with both documents required to include the information needed for an informed vote, including risk factors. If Gulf Union Alahlia shareholders approve the capital increase and Gulf General shareholders accept the offer at their Extraordinary General Assembly Meetings, the new shares will be issued to Gulf General shareholders registered in the Securities Depository Center Company shareholders registry and Gulf General shares will be delisted from the Saudi Stock Exchange; the CMA also noted its approval reflects satisfaction of legal requirements under the Capital Market Law and implementing regulations and does not endorse the merger’s feasibility.
Saudi Arabia Capital Markets Authority 2025-02-24
Saudi Arabia Capital Markets Authority approves Gulf Union Alahlia capital increase to SAR 687.2m for Gulf General share exchange merger
Saudi Arabia's Capital Markets Authority approved Gulf Union Alahlia Cooperative Insurance Co.'s capital increase from SAR 458,949,280 to SAR 687,181,550 by issuing 22,823,227 ordinary shares to merge with Gulf General Cooperative Insurance Co. via a securities exchange offer. The CMA also approved the offer timetable and publication of necessary shareholder documents for informed voting. The approval confirms legal compliance but does not endorse the merger's feasibility.