Riyadh – Mubasher: The extraordinary general meeting (EGM) of Walaa Cooperative Insurance Company greenlighted a capital raise to SAR 850.58 million from SAR 646.39 million for a merger with SABB Takaful Company.

The merging process will be carried out through a share swap transaction, under which Walaa Cooperative Insurance will issue 0.60 shares against each share issued in SABB Takaful, according to a bourse disclosure.

In February 2022, the two entities signed a non-binding agreement for a potential merger, under which Walaa Cooperative Insurance was obliged to increase its share capital by issuing 20.41 million ordinary shares at a nominal value of SAR 10 per share.

Following the capital hike, about 24.01% of Walaa Cooperative Insurance’s new capital would be owned in favour of SABB Takaful's shareholders.

Upon completing the merger transaction, SABB Takaful’s assets, liabilities, and rights will be transferred to Walaa Cooperative Insurance. Accordingly, SABB Takaful will be delisted from the Saudi Exchange (Tadawul) once the merger is effective.

During the first half (H1) of 2022, Walaa Cooperative Insurance reported net losses before Zakat worth SAR 27.62 million, an annual leap of 107.42% from SAR 13.32 million.