GCC: Solidarity Bahrain acquires 29% stake in UAE insurer
Source: Middle East Insurance Review | Dec 2024
Solidarity Bahrain, a leading takaful provider and subsidiary of Solidarity Group Holding, has announced the acquisition of a 28.985% stake in Alliance Insurance, an insurer based in Dubai and listed on the Dubai Financial Market.
The acquisition was made in two stages and announced in separate stock exchange statements by Solidarity Bahrain. The first deal was made on 11 November in which Solidarity purchased 25% (250,000 shares) of Alliance at AED112.55m ($30.6m). The second purchase was on 14 November with 3.985% (39,850 shares) purchased at AED17.932m.
The transactions, which received approvals from the Central Bank of the UAE and the Central Bank of Bahrain, were funded through a combination of debt (murabaha financing) and equity. “This strategic move enables Solidarity Bahrain to strengthen its presence in the UAE by leveraging Alliance’s established market position”, said Solidarity Bahrain in the bourse statements.
Following the acquisitions, Alliance is expected to be classified as an associate of Solidarity Bahrain.
Alliance’s issued and paid up share capital consists of 1m ordinary shares with a nominal value of AED100 each. The insurer was established in 1975 in the UAE and provides both life and general insurance. M