RIYADH: Saudi Arabia’s SABB Takaful will be fully merged into Walaa Insurance following an agreement between both companies on Feb. 24.
Upon completion of the deal, SABB Takaful’s assets, liabilities, and rights will be transferred to Walaa Insurance and the former will “cease to exist”, a bourse filing revealed.
Walaa Insurance will see its share capital jump to SR850 million ($227 million), of which 24 percent will be held by SABB Takaful’s shareholders.
The merger will be conducted through a share swap where Walaa will issue 0.6 shares against each share issued by SABB Takaful, the insurers said in a statement.