Walaa, Metlife cooperative weigh potential merger
Walaa Cooperative Insurance Company (Walaa) announced the signing of a non-binding Memorandum of Understanding with MetLife AIG ANB Cooperative Insurance Company 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.
Walaa and MetLife AIG ANB Cooperative Insurance Company have agreed that, in the event the proposed merger occurs, it will be implemented by way of an exchange of shares where, after the proposed merger is completed, The Company will issue new shares to MetLife AIG ANB Cooperative Insurance Company shareholders in exchange for all issued shares of MetLife AIG ANB Cooperative Insurance Company.
The two companies 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 Walaa and the shareholders of the MetLife AIG ANB Cooperative Insurance Company shall be calculated using the respective reported book value per share of Walaa and MetLife AIG ANB Cooperative Insurance Company in their most recent financial statements published on or before the date of signing of the merger agreement.
Walaa has appointed Aljazira Capital as its financial advisor for the proposed merger.