Riyadh, Saudi Arabia— Walaa Insurance has received approval from its shareholders to merge with SABB Takaful, after a binding agreement was reached in February between the two parties.
According to a bourse filing, Walaa Insurance also received its shareholders’ approval to raise its share capital to $227 million, out of which 24 percent will go to SABB Takaful’s shareholders.
The merger will be conducted through a share swap where Walaa will issue 0.6 shares against each share issued by SABB Takaful.
SABB Takaful’s assets, liabilities, and rights, on the completion of the deal, will be transferred to Walaa Insurance, and the former will cease to exist.