MetLife AIG ANB Cooperative Insurance Company announced the signing of a non-binding Memorandum of Understanding with Walaa on 15/10/1440H (corresponding to 18/06/2019) 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 Company and Walaa 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, Walaa will issue new shares to the Company's shareholders in exchange for all issued shares of the 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 Company shall be calculated using the respective reported book value per share of Walaa and the Company in their most recent financial statements published on or before the date of signing of the merger agreement.