RIYADH: Saudi Arabia’s Public Investment Fund has signed a non-binding agreement with Saudi Reinsurance Co. to subscribe to its new cash shares through capital increase, according to a bourse filing. According to Saudi Re, the subscription of the new cash shares will happen while suspending the current shareholders’ preemptive rights. The reinsurance company confirmed that the sovereign fund plans to subscribe to cash shares, representing a significant minority stake, at a price of SR16 ($4.27) per share. Additionally, it disclosed that Al Rajhi Capital has been appointed as the financial adviser for the company, while GIB Capital will serve as the adviser for the fund. The Riyadh-based company emphasized that the subscription agreement’s terms and conditions will encompass obtaining all necessary regulatory approvals, including approvals from the Capital Market Authority and the Saudi Central Bank. The company will also seek approval from its shareholders during its extraordinary general assembly. The company and fund will collaborate in negotiating the subscription agreement, and all significant developments related to the proposed transaction will be disclosed under applicable laws and regulations. The MoU holds a three-month validity period from the signing date unless extended by prior written agreement of both Saudi Re and the fund or upon the execution of a legally binding subscription agreement between both parties. Alternatively, the MoU may be terminated by prior written agreement of both parties or after 15 days from the date of PIF providing written notice to Saudi Re of its intention to cease negotiations and discontinue the proposed transaction, whichever occurs earlier. The execution of the proposed deal is contingent on Saudi Re and PIF entering into a subscription agreement. The signing of the subscription agreement is subject to obtaining the necessary internal approvals from PIF. Furthermore, the proposed transaction is conditional on there being no change in the position of the CEO or any other executive positions within Saudi Re. Saudi Reinsurance Co. is a joint stock company founded in 2008 as the first reinsurance company established in the Kingdom.