Insurers Al Sagr and Gulf Union Alahlia shares start flat following merger agreement

RIYADH: Shares of Al Sagr Cooperative Insurance Co. and Gulf Union Al Ahlia Cooperative Insurance Co. were flat on Tuesday, opening at SR9.79 ($3) and SR9, respectively, after they signed an memorandum of understanding to discuss a potential merger between the two companies.

After the proposed merger is completed, Gulf Union Alahlia will issue new shares to Al Sagr Insurance shareholders in exchange for all issued shares of Al Sagr, according to a bourse filing.