Bupa Arabia for Cooperative Insurance Company (Bupa Arabia or the Company) has announced that its shareholders have approved the demerger of the Company's assets and liabilities.
The split is between the Company, which will be converted into a holding company, and a newly incorporated, wholly owned closed joint stock company to be incorporated as a result of the demerger (the Demerged Company).
Shareholders approved the demerger at an extraordinary general meeting on 5 March.
Under the arrangement, all assets and liabilities related to the Company’s insurance activities, including insurance contracts with customers, employee contracts in designated departments, and Bupa Arabia for Third Party Administration (Bupa TPA), will be transferred to the Demerged Company, while retaining any other business activities within the Company.
The net assets to be transferred to the Demerged Company shall consist of the following:
- A capital of SAR1.5bn ($400m), divided into 150m ordinary shares with a nominal value of SAR10 each
- Statutory reserve for the insurance business in the amount of SAR1.5bn
- Retained earnings of SAR1,587m
- End-of-service benefits reserve in the amount of SAR5.6m; and
- Fair value reserve for investments in the amount of SAR84.3m
In addition, there will be a transfer of SAR4,497m of net assets as a contribution to the Demerged Company.
The Company’s name will be changed to “Bupa Arabia Holding Company” (or any similar name the Ministry of Commerce approves) while the commercial name “Bupa Arabia for Cooperative Insurance Company” is assigned to the Demerged Company. The Demerged Company shall be the successor to the Company.