Saudi Arabia-based Walaa Cooperative Insurance has gained the consent of its shareholders to push through with the merger with SABB Takaful, following a binding agreement between the two insurance companies signed in February.
Walaa also received shareholder approval to raise its share capital to SAR851 million (SG$318.7 million), 24% of which will go to SABB Takaful's shareholders, according to a bourse filing.
The merger will be executed through a share swap, with Walaa issuing 0.6 shares for each share issued by SABB Takaful, Arab News reported. Once the transaction is completed, Walaa will take over SABB Takaful’s assets, liabilities, and rights, and SABB Takaful will cease to exist.
SABB Takaful is 65% owned by Saudi British Bank, a partner of the HSBC Group. Walaa Cooperative Insurance, headquartered in Al-Khobar, serves both retail and commercial segments. It provides motor, medical, travel, property, engineering, marine and various other insurance products.
