Saudi Reinsurance seals SAR 427.7M binding subscription agreement with PIF

Saudi Reinsurance Co. inked, on July 4, a binding subscription agreement with the Public Investment Fund (PIF), according to a statement to Tadawul.

In accordance with the subscription agreement, the company will increase its capital from SAR 891 million to 1.158 billion, while suspending the pre-emptive rights, by issuing 26.73 million new ordinary shares, representing 30% of the company’s current capital, at a nominal value of SAR 10 per share.

PIF will fully subscribe to the new shares, bringing its company’s ownership to 23.08% after the capital hike.

In full consideration of issuing the new shares, PIF is committed to pay to the company a subscription of SAR 16 per each new share, with a total subscription of SAR 427.68 million, subject to the non-objection of the Insurance Authority and the approval of the Capital Market Authority (CMA).

The capital increase is subject to several approvals from the competent authorities including the Insurance Authority, the CMA, the Saudi Exchange (Tadawul), the approval of the company's extraordinary general meeting (EGM) and other approvals by the PIF.

Upon completion of the capital increase, the company shall carry out the necessary procedures to appoint three board members, to be nominated by PIF.

The company’s financial advisor is Al Rajhi Capital and GIB Capital is PIF financial advisor.

The PIF is not a related party in the deal, the statement added.