Gulf Union Al-Ahlia Signs Binding Merger Agreement with General Gulf Cooperative Insurance

Gulf Union Al-Ahlia Cooperative Insurance Company (GUAI) announced on Tuesday its entry into a binding merger agreement with General Gulf Cooperative Insurance Company (GGI), signaling its intention to proceed with the proposed merger.

According to a statement on “Tadawul,” the agreement involves merging GGI into GUAI, transferring all rights, liabilities, assets, and contracts to GUAI. In return, GUAI will issue 22.8 million shares at a nominal value of SAR 10 per share to GGI shareholders.

The merger aligns with Articles (225) and (227–229) of the Companies Law, subparagraph (1) of paragraph (A) of Article (49) of the Merger and Acquisition Regulations, and the Rules on the Offer of Securities and Continuing Obligations issued by the Capital Market Authority (CMA). It also adheres to the terms outlined in the merger agreement.

Additionally, GUAI confirmed its firm intention to submit an offer under the merger deal, as stipulated in paragraph (E) of Article (17) of the Merger and Acquisition Regulations.

The company noted that details of the total anticipated costs for the merger will be disclosed in a shareholder circular, which will be published following regulatory approvals.