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Saudi Arabian insurer AlAhli Takaful Company announced on Wednesday the effectiveness of its merger deal with Arabian Shield Cooperative Insurance Company after no objections were raised by creditors within the set deadline.
The two companies had signed an agreement to merge last July 2021 and creditors were given until Tuesday, January 11, 2022 to make their objections known.
With the merger now effective, AlAhli Takaful is no longer considered a separate establishment and all of its assets and liabilities have been transferred to Arabian Shield, a disclosure to the Saudi Stock Exchange (Tadawul) said.
“AlAhli Takaful Company has therefore ceased to exist as a separate legal entity,” the statement said.
“As a result of the merger, all of the shares of AlAhli Takaful Company will be cancelled and Arabian Shield Cooperative Insurance Company will, by way of increasing its paid-up capital, issue 23,852,462 ordinary shares… in favour of AlAhli Takaful Company shareholders.”
The merger was expected to create a “larger, stronger and more solvent” insurance company, according to a previous statement.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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