PIF signs MoU to subscribe to new cash shares in Saudi Re via capital hike

Saudi Reinsurance Co. (Saudi Re) signed on Oct. 7 a non-binding memorandum of understanding (MoU) with the Public Investment Fund (PIF), under which the fund will subscribe to new cash shares in the former by way of capital increase while suspending preemptive rights of the current shareholders.

The PIF will subscribe to new cash shares, which represent a significant minority in Saudi Re at SAR 16 per share, Saudi Re said in a statement to Tadawul.

Al Rajhi Capital and GIB Capital were mandated as advisors for Saudi Re and the Kingdom’s sovereign wealth fund, respectively.

The MoU will expire within three months from the date of signing, unless extended by both parties.

The financial impact will be announced in due course.

Source : Argaam