Riyadh – Mubasher: Al Ahlia Insurance Company on Sunday said that its merger decision with Gulf Union Cooperative Insurance Company has come into effect.
This comes as Al Ahlia’s creditor objection period to merge with Gulf Union ended on 3 December 2020 with no proofed objections about any final or confirmed debts from Al Ahlia creditors during that period received, according to a stock exchange statement.
Under this merger, all assets and liabilities of Al Ahlia, which will cease to exist, have been transferred to Gulf Union, which will continue to exist.
As a result of the merger deal, all shares of Al Ahlia will be cancelled, and Gulf Union will increase its capital through issuing 7.947 million ordinary shares, with a par value of SAR 10 per share, for Al Ahlia shareholders.
Moreover, the Saudi Stock Exchange (Tadawul) has suspended trading on the shares of Al-Ahlia Insurance starting from 6 December to commence delisting procedures of the shares.
In August, Al Ahlia received a no objection letter from the Saudi Central Bank (SAMA) concerning its potential merger with Gulf Union.
