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Amana, Saudi Enaya finalise merger agreement

Amana, Saudi Enaya finalise merger agreement
The shareholders of Enaya will own 55% of Amana’s capital
AMANA INSURANCE
8310
-1.01% 34.35 -0.35
ENAYA
8311
-0.25% 40.50 -0.10

Riyadh – Mubasher: Amana Cooperative Insurance Company and Saudi Enaya Cooperative Insurance Company have signed a binding merger agreement, according to a disclosure to Tadawul on Sunday.

Amana will issue new ordinary shares in consideration of the purchase of all the issued shares in Saudi Enaya. Therefore, all the assets and liabilities of Enaya will be transferred to Amana.

If the capital of Amana is not reduced before the completion of the merger, it will issue 29.27 million new ordinary shares at a nominal value of SAR 10 each to buy Enaya’s entire shares for SAR 292.76 million.

The other scenario is if Amana’s capital is reduced prior to merger completion; Amana will issue 15.85 million new shares at a par value of SAR 10 each to purchase Enaya’s issued shares for SAR 158.58 million.

Upon the completion of the merger, the shareholders of Enaya will own 55% of Amana’s capital, while the current shareholders of Amana will own 45% of its shares.

Both companies will continue to use their name and trademark until the merger becomes effective, and an agreement is reached between the two parties on a name for the merging company after the completion of the deal.

In November 2020, the two sides penned a non-binding deal to assess the feasibility of the potential merger.