Arabian Shield Cooperative Insurance Company (SASE:8070) signed a non-binding memorandum of understanding to acquire Alinma Tokio Marine Company (SASE:8312) from Tokio Marine & Nichido Fire Insurance Co., Ltd., Alinma Bank (SASE:1150) and others on December 13, 2022. Arabian Shield Cooperative Insurance Company signed a binding agreement to acquire Alinma Tokio Marine Company from Tokio Marine & Nichido Fire Insurance Co., Ltd., Alinma Bank (SASE:1150) and others for SAR 270 million on June 14, 2023. Under the terms, consideration will be of share to share exchange. Arabian shield shall issue 0.532094 nominal shares against each issued share in Alinma. The surviving entity will absorb all of the employees of the merging entity, and there will be no enforced redundancies. The transaction is subject to approval by regulatory authorities, shareholders approval from Arabian Shield Cooperative and Alinma Tokio, Board approvals, consummation of due diligence and other conditions. As of June 20, 2023, General Authority for Competition issued a non-objection certificate to complete the binding merger agreement. The break up fee for both parties is SAR 3,750,000. Yaqeen Capital acted as a financial advisor to Alinma Tokio. As of September 12, 2023, Saudi Central Bank (SAMA) approved the transaction and the transaction remains subject to other conditions including certain regulatory approvals and the affirmative votes of the extraordinary general assemblies of both Arabian Shield and Alinma Tokio on the Merger Transaction.

Arabian Shield Cooperative Insurance Company (SASE:8070) completed the acquisition of Alinma Tokio Marine Company (SASE:8312) from Tokio Marine & Nichido Fire Insurance Co., Ltd., Alinma Bank (SASE:1150) and others on October 26, 2023.