Saudi Central Bank has approved the merger of SABB Takaful with the rival insurer Walaa Insurance, following an agreement between the two groups in February.
According to a bourse filing, the execution of the transaction remains subject to obtaining regulatory approvals and votes of the extraordinary general assemblies.
Once the deal is completed, SABB Takaful’s assets, liabilities, and rights will be transferred to Walaa Insurance and the former will cease to exist.
Walaa Insurance will see its share capital jump to SR850 million ($227 million), out of which 24 percent will be held by 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.
