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Saudi Arabia’s Pif to Buy New Saudi Re Shares for $114mln

Saudi Arabia’s Pif to Buy New Saudi Re Shares for $114mln

Saudi Arabia’s Public Investment Fund (PIF) will increase its ownership in Saudi Reinsurance Company (Saudi Re) to 23.08% after investing 427.68 million Saudi riyals ($114.02 million) to acquire new shares in the insurance company.

The two companies signed a binding subscription agreement.

Saudi Reinsurance will increase its capital from SAR 891 million to SAR 1.15 billion by suspending pre-emptive rights by issuing 26.73 million shares, or 30% of the company’s current capital,  at a nominal value of SAR 10.

The PIF will fully subscribe to the shares and pay SAR 16 per new share.

The deal is subject to securing non-objection of the Insurance Authority and the approval of the Capital Market Authority.

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

Al Rajhi Capital and GIB Capital will be financial advisors for Saudi Re and PIF, respectively.

(Editing by Seban Scaria

Source: ZAWYA