Further to the announcement made by Gulf Union Al Ahlia Cooperative Insurance Company (the "Company" or “Gulf Union Al Ahlia”) on Tadawul’s website on 30/08/1444H (corresponding to 22/03/2022G) (the "Merger Announcement") regarding the signing of a binding merger agreement (the “Merger Agreement”) with AlSagr Cooperative Insurance Company ("Al Sagr”), according to which both parties have agreed to undertake the necessary steps to implement the Merger Transaction pursuant to articles 225, 227, 228 and 229 of the Companies Law and subsection a.(1) of article 49 of the Merger and Acquisitions Regulations (“Merger Transaction” or "Transaction" or “Merger”).

Whereas the requirements for announcing a firm intention to make an offer are fulfilled in accordance with the provisions of the Merger Agreement and pursuant to Article 17 of the Merger and Acquisition Regulations, Gulf Union Al Ahlia announces its firm intention to make an offer to the shareholders of Al Sagr and to proceed with the Merger, and confirms each of the following as at the date of this announcement:

1. No person is acting in conjunction with Gulf Union Al Ahlia in relation to the Merger.

2. Gulf Union Al Ahlia does not own any shares in Al Sagr, nor does it own options to purchase such shares.

3. Gulf Union Al Ahlia has not received any irrevocable undertakings from any party to vote in favor of the Merger at the relevant extraordinary general assembly.

4. There are no indemnity arrangements in relation to the shares of Al Sagr involving Gulf Union Al Ahlia, Al Sagr or any person acting in conjunction with Al Sagr.

5. The financial adviser of Gulf Union Al Ahlia (Aljazira Capital) is not bound to provide a confirmation that Gulf Union Al Ahlia has sufficient resources to satisfy the completion of the Merger given that the consideration payable by Gulf Union Al Ahlia does not include cash consideration in any respect.

Please refer to the Transaction Announcement for additional information relating to the Transaction including (i) the structure of the Transaction and its terms including the agreed Exchange Ratio; (ii) the steps and conditions of the Transaction including the required regulatory approvals.

The Transaction Announcement can be accessed through the following link:

https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/!ut/p/z1/jZFdb4IwFIZ_ixdcLj3AWuruCmLFSAGBCb0xZSaOhK8szMV_P6bJkuEwnrsmz9vzvDlIogzJRp3Ko-rLtlHV8M4l2WNGwFhRCGCVOEAg5iRNqL7wTLQbAXGIIVqGvrmBLXAgSD6Sh4lh8Fj-F6A-JxAJFgWGhYG_PpCXfxG-NNyhwdyOFi7XgVtj4J-KF-Beh7sWBhkDAZtbw4q1zb0NMym5cbituUbyWLXF9WTvfd-9aKBBrw7q67PSBoW3tu5Uc47PddEOENUNmEJV0ziqR5k-DXgHlFkGJs8oHw5gTXaLCIp_5JkQQSoc13dFshepb7tblF8_kGO3_OIWqw_U1WmaQemVYb2jPS5wdxJPbDb7Bu-9sgM!/dz/d5/L0lHSkovd0RNQURrQUVnQSEhLzROVkUvZW4!/