BlueFive Investments Holding (BlueFive Capital) has declared that it has made a non-binding offer for a proposed investment in Gulf General Cooperative Insurance Company.
The proposal was announced by GGI to the Saudi Stock Exchange, describes a two-part transaction designed to help the company’s financial foundation. The proposed transaction also includes a capital reduction to minimize the accumulated losses of GGI and a rise in capital.
BlueFive or a subsidiary will subscribe to the new shares in cash for SAR 10 per share under this, with the existing shareholders being suspended in their pre-emptive rights.
This structure is aimed at assisting in cleaning the balance sheet of the Company and offering immense new capital to the operations and expansion plans.
Founder and Chief Executive of BlueFive Capital, Hazem Ben-Gacem, said that “We are pleased to propose this investment in GGI, which is designed to reset the company’s financial position and provide a clear path for sustainable growth.”
Therefore, the execution of the non-binding offer implements an exclusivity period for a two-month term. The offer will end upon the execution of definitive agreements, the discussions are mutually concluded, or at the end of this period, until extended by mutual agreement.
The proposed transaction will come with conditions, as it involves the successful negotiation and execution of definitive agreements between the parties and securing all the necessary regulatory approvals.
However, it might be approved by the extraordinary general assembly of the company in the reduction of capital as well as an increase in the capital.
He further stated that “We see a compelling opportunity in the Saudi insurance market, and we look forward to partnering with GGI to enhance its market position and create significant long-term value for shareholders and policyholders alike.”
