Riyadh, Saudi Arabia— Al Sagr Cooperative Insurance Co. has signed a non-binding memorandum of understanding with its rival Gulf Union Al Ahlia Cooperative Insurance Co. to discuss a potential merger between the two companies.
According to a bourse filing, after the proposed merger is completed, Gulf Union Alahlia will issue new shares to Al Sagr Insurance shareholders in exchange for all issued shares of Al Sagr.
After Gulf Union Alahlia and Al Sagr have conducted all necessary due diligence, Gulf Union Alahlia and Al Sagr will determine the share-for-share exchange ratio.
Al Sagr hired Alinma Investment to act as its financial advisor for the proposal.