RIYADH: SABB Takaful Co. has been suspended from trading on the Saudi Stock Exchange in preparation to begin delisting procedures after its merger with Walaa Cooperative Insurance.
Walaa Cooperative Insurance Co. said in a separate bourse filing that the decision to merge the two companies had begun, and all assets and obligations of SABB Takaful had been transferred to Walaa Insurance Co.
Last month, Walaa received approval from its shareholders to merge with SABB Takaful, after a binding agreement was reached in February between the two parties.
Walaa Insurance also receives its shareholders’ approval to raise its share capital to SR851 million ($227 million), out of which 24 percent will go to SABB Takaful's shareholders.
The merger is to be conducted through a share swap where Walaa will issue 0.6 shares against each share issued by SABB Takaful.
Walaa will issue more than 20 million ordinary shares with a nominal value of SR10 per share to SABB Takaful Co. shareholders, registered with the Saudi Securities Depository Center Co.
