Gulf Union Alahlia Cooperative Insurance Company (SASE:8120) signed non-binding Memorandum of Understanding to acquire Al Sagr Cooperative Insurance Company (SASE:8180) on September 19, 2022. Gulf Union Alahlia Cooperative Insurance Company (SASE:8120) signed a binding merger agreement to acquire Al Sagr Cooperative Insurance Company (SASE:8180) for approximately SAR 150 million on March 22, 2023. As per the transaction, Gulf Union Alahlia Cooperative Insurance Company will issue 16.124317 million shares to the shareholders of Al Sagr Cooperative Insurance Company. The transaction is subject to antirust approvals and shareholders? approval of Gulf Union Alahlia Cooperative Insurance Company and Al Sagr Cooperative Insurance Company. The transaction is approved by board of directors of Gulf Union Alahlia Cooperative Insurance Company and Al Sagr Cooperative Insurance Company. CMA has approved Capital increase of Gulf Union Alahlia Cooperative Insurance Company to be done with respect to purchase consideration in the transaction. The merger was approved by shareholders of Gulf Union Alahlia Cooperative Insurance Company at Extraordinary general assembly meeting on August 30, 2023. The shareholders of Al Sagr Cooperative Insurance Company voted not to approve the merger at the extraordinary meeting of shareholders held on August 30, 2023. Alinma Investment Company acted as financial advisor to Al Sagr Cooperative Insurance Company. AlJazira Capital Company and Deloitte Financial Advisory Services Ltd. acted as financial advisors, Abdulaziz Alajlan & Partners acted as legal advisor and Deloitte Financial Advisory Services Ltd. acted as due diligence provider to Gulf Union Alahlia Cooperative Insurance Company.

Gulf Union Alahlia Cooperative Insurance Company (SASE:8120) cancelled the acquisition of Al Sagr Cooperative Insurance Company (SASE:8180) on August 30, 2023. The shareholders of Al Sagr Cooperative Insurance Company did not approve the merger transaction in the extraordinary general meeting held on August 30, 2023 resulting in the merger being called off.