Saudi Enaya Cooperative Insurance Co. announces signing a Memorandum of Understanding with The United Cooperative Assurance Company for Evaluation of a potential merger between the Saudi Enaya Cooperative Insurance Company and the United Cooperative Assurance Company

Saudi Enaya Cooperative Insurance Co. announces signing a Memorandum of Understanding with The United Cooperative Assurance Company for Evaluation of a potential merger between the Saudi Enaya Cooperative Insurance Company and the United Cooperative Assurance Company

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|Introduction||The Saudi Enaya Cooperative Insurance Company announces the signing of a non-binding Memorandum of Understanding (the “MOU”) with the United Cooperative Assurance Company on 11/05/1444H (corresponding to 05/12/2022) 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 agreed that, in the event the proposed merger occurs, it will be implemented by way of share swap where, after the proposed merger is completed, the United Cooperative Assurance Company will issue new shares to the Saudi Enaya Cooperative Insurance Company shareholders in exchange for all issued shares of the Saudi Enaya Cooperative Insurance Company. 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) and that the swap ratio between the United Cooperative Assurance Company and the shareholders of the Saudi Enaya Cooperative Insurance Company shall be calculated using the respective adjusted book value per share at a mutually agreed Cut-Off Date. The Saudi Enaya Cooperative Insurance Company will appoint a Financial Advisor for the proposed