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RIYADH: Shares of Gulf Union Al Ahlia Cooperative Insurance Co. rose at the end of Tuesday following the signing of a memorandum of understanding with Al Sagr Cooperative Insurance Co. to discuss a potential merger between the two companies.
Gulf Union Al Ahlia saw its share price rise by 0.44 percent to end the day at SR9.04, while Al Sagr Insurance remained flat at SR9.79 ($3)
After the proposed merger is completed, Gulf Union Alahlia will issue new shares to Al Sagr Insurance shareholders in exchange for all issued shares of Al Sagr, according to a bourse filing.
After Gulf Union Alahlia and Al Sagr have conducted all necessary due diligence, the firms will determine the share-for-share exchange ratio.
Al Sagr hired Alinma Investment to act as its financial advisor for the proposal.