Amana, ACIG sign MoU to explore merger

Amana Cooperative Insurance Company (Amana) has announced in a bourse filing the signing of a non-binding Memorandum of Understanding (MoU) with Allied Cooperative Insurance Group (ACIG) on to evaluate a potential merger between the two companies. Both companies will conduct technical, financial, legal and actuarial due diligence and engage in non-binding discussions on the terms and conditions of the potential merger.

The two companies have initially agreed that the methodology used for valuation will be based on equity book value (after any mutually agreed due diligence adjustments). The MOU would expire on the earlier of the signing of the merger agreement or after 12 months of signing the MOU.

Amana will continue to announce any material developments regarding the proposed merger in accordance with the relevant laws and regulations. Meanwhile, Amana intends to continue to conduct business as usual until completion of the proposed merger.

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 general assemblies of Amana and ACIG. The entry into the MOU does not mean that the proposed merger will be agreed between the two companies.