Gulf Union Cooperative Insurance Co. (SASE:8120) signed a memorandum of understanding to acquire Al-Ahlia Insurance Co. (SASE:8140) for approximately SAR 100 million on December 24, 2019. Gulf Union Cooperative Insurance Co. signed a binding agreement to acquire Al-Ahlia Insurance Co. on June 4, 2020. Under the transaction, Gulf Union will issue 0.65 new share of Gulf Union Cooperative for each share in Al-Ahlia Insurance Co. Under the transaction, Gulf Union will issue its 7.9 million new shares. Gulf Union and Al-Ahlia Insurance have initially agreed that the basis of the valuation will be using equity book value (after any mutually agreed due diligence adjustments) and that the exchange ratio between the Gulf Union and Al-Ahlia shall be calculated using the respective reported book value per share of the Company and Al-Ahlia in their most recent financial statements published on or before the date of signing of the merger agreement. As a part of transaction, Al-Ahlia Insurance Co. will merge with Gulf Union Cooperative Insurance Co., and merged entity will operate under the name of Gulf Union Al Ahlia Cooperative Insurance Company. The proposed merger is subject to the completion of due diligence to the parties' satisfaction, agreement on final terms and conditions of the merger agreement, and the approval of the competent authorities and the extraordinary general assemblies of the companies. The memorandum of understanding would expire on the earlier of the signing of the merger agreement or after a period of nine months from the date of the memorandum of understanding. As on August 11, 2020, Al-Ahlia Insurance Co. gets NOC from Saudi Arabian Monetary Authority for transaction. As of August 31, 2020, CMA approved resolution for Gulf Union Cooperative Insurance Co. request to increase its capital from SAR 150 million to SAR 229.474640 million by issuing 7.947464 ordinary shares. As of November 3, 2020, transaction has been approved by the shareholders of Gulf Union Cooperative Insurance Co. September 10, 2020, the Gulf Union Cooperative Insurance obtained the approval from the Capital Market Authority. October 5, 2020, the Company's and Al Ahlia's shareholders approved the merger. As of December 2, 2020, the end of creditor's object period was approaching. Saudi Kuwaiti Finance House S.S.C. House acted as financial advisor to Gulf Union Cooperative Insurance Co.

Gulf Union Cooperative Insurance Co. (SASE:8120) completed the acquisition of Al-Ahlia Insurance Co. (SASE:8140) on December 6, 2020.