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Walaa Insurance, MetLife AIG disclose steps in merger deal

Walaa Insurance, MetLife AIG disclose steps in merger deal
Swap ratio is one share in Walaa for every 1.52 in MetLife
WALAA
8060
-1.38% 17.20 -0.24
METLIFE AIG ANB
8011
-7.74% 14.30 -1.20

Riyadh – Mubasher: Walaa Cooperative Insurance Company has entered into a binding merger agreement with MetLife AIG ANB Cooperative Insurance Company on 29 September 2019 corresponding to 30/1/1440 H.

Based on the binding merger, Walaa will purchase all of the shares held by the shareholders in MetLife through offering a swap deal; this shall include an exchange of shares without any cash consideration, according to a recent disclosure to the Saudi Stock Exchange (Tadawul).

The exchange process shall be carried out through increasing the capital of Walaa Insurance by issuing new ordinary shares to all shareholders in MetLife AIG.

Additionally, Walaa Insurance stresses that it neither owns any shares in MetLife AIG nor having the option of purchasing these shares.

Walaa Insurance’s financial adviser, Al Jazira Capital, is not bound to provide a confirmation stating that the company has sufficient resources to seal the merger, taking into account that the deal does not include any payment in cash.

In a separate disclosure to Tadawul, MetLife said that the total number of the new shares issued by Walaa to MetLife AIG’s shareholders will amount to 11.839.706 million new shares, representing 18.32% of Walaa Insurance’s total capital shares after the increase.

Therefore, Walaa Insurance’s new capital will include 64.639.706 million shares at a total value of SAR 646.397 million.

Upon approval from all competent governmental authorities and the extraordinary general meeting (EGM) of both companies, Walaa Insurance shall issue the new shares at a nominal value of SAR 10 per each in exchange for purchasing all of the issued shares in MetLife AIG at a total nominal value of SAR 118.397.060 million.

Hence, the swap ratio will include one share in Walaa shall be issued for every 1.52 owned shares in MetLife AIG.