Walaa Cooperative Insurance Company signed a non-binding memorandum of understanding to acquire SABB Takaful Company for approximately SAR 500 million.

Walaa Cooperative Insurance Company (SASE:8060) signed a non-binding memorandum of understanding to acquire SABB Takaful Company (SASE:8080) for approximately SAR 500 million on July 14, 2021. Walaa Cooperative Insurance Company signed Merger Agreement to acquire SABB Takaful Company on February 2, 2022. The potential merger will be implemented by way of an exchange of shares, where Walaa will issue 0.60054 Walaa shares for every SABB Takaful share to the shareholders of SABB Takaful Company in exchange for all issued shares of SABB Takaful Company.

The share-for-share exchange ratio between Walaa and SABB Takaful shall be arrived at after concluding (to the satisfaction of each company) all necessary operational, technical, financial, legal, and actuarial due diligence. The potential merger expects to absorb all of the employees of SABB Takaful Company into Walaa. 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 Walaa and SABB Takaful.

The MOU would expire on the earlier of the signing of the merger agreement or after a period of 180 days from the date of the MOU. The MOU can be extended by mutual consent of the parties thereto. Saudi Fransi Capital Limited, Investment Banking Arm acted as financial advisor to SABB Takaful.

Aljazira Capital Company acted as financial advisor to Walaa Cooperative Insurance Company.