Aljazira Takaful Taawuni Company (SASE:8012) signed a Memorandum of Understanding with Solidarity Saudi Takaful Company (SASE:8290) to evaluate a potential merger between the two companies for approximately SAR 200 million on June 26, 2019. Aljazira Takaful Taawuni Company (SASE:8012) entered into an agreement to acquire Solidarity Saudi Takaful Company (SASE:8290) for approximately 200 million SAR on August 24, 2020. Solidarity Saudi Takaful Company and Aljazira Takaful Company have agreed that, in the event the proposed merger occurs, it will be implemented by way of share swap where, after the proposed merger is completed, Aljazira Takaful Company will issue 12.1 million new shares to Solidarity Saudi Takaful Company shareholders in exchange for all issued shares of Solidarity Saudi Takaful Company. The two companies have initially agreed that the methodology used for valuation will be based on equity book value (after any mutually agreed due diligence adjustments) and that the swap ratio between Aljazira Takaful Company and the shareholders of Solidarity Saudi Takaful Company shall be calculated using the respective adjusted equity book value per share as at a mutually agreed Cut-Off Date. The MOU would expire on the earlier of the signing of the merger agreement or at the end of the first quarter of 2020. Solidarity Saudi Takaful Company and Aljazira Takaful Taawuni Company have signed an amended non-binding memorandum of understanding (MoU) to evaluate a potential merger between the two firms According to amended agreement the MOU will end on September 30, 2020 or agreement signing date, which ever is earlier. Post the completion of the transaction, Solidarity Saudi will hold 25.64% stake in the capital of Aljazira. The proposed merger is subject to the completion of due diligence to the parties satisfaction, agreement on final terms and conditions of the merger agreement, and the approval of the competent authorities and the general assemblies of Solidarity Saudi Takaful Company and Aljazira Takaful Company. Completion of the transaction is subject to regulatory and shareholder approvals. The deal is subjected to approval from shareholders of Aljazira Takaful Ta'awuni Company and Solidarity Saudi Takaful Company. As of December 1, 2020, The Saudi Central Bank approved the deal. Solidarity Saudi Takaful Company shareholders approved the deal on January 26, 2021. As of February 26, 2021, there are no outstanding objections from the creditors of Solidarity Saudi Takaful Company.

Saudi Kuwaiti Finance House S.S.C. acted as the financial advisor to Solidarity Saudi Takaful Company. Aljazira Capital Company acted as financial advisor to Aljazira Takaful Taawuni Company. FALCOM Financial Services Company was later appointed as financial advisor to Aljazira Takaful Taawuni Company instead of Aljazira Capital.

Aljazira Takaful Ta'awuni Company (SASE:8012) completed the acquisition of Solidarity Saudi Takaful Company (SASE:8290) on February 28, 2021. Shares of Solidarity Saudi Takaful Company were delisted from the Saudi Stock Exchange (Tadawul) on March 1, 2021. Solidarity Saudi Takaful Company's merger with Aljazira Takaful Ta'awuni Company came into effect and all of Solidarity Saudi Takaful Company' assets and liabilities were transferred to Aljazira Takaful Ta'awuni Company which will continue to exist.