Al-Koot, DIG look to potential merger

Gulf International Services (GIS) and Doha Insurance Group (DIG) announced, in a joint press release that they intend to engage in initial negotiations on a potential all-share merger of Al-Koot Insurance and Reinsurance Company, a wholly owned subsidiary of GIS, with Doha Insurance Group.

The potential merger would form a local organisation with increased competitive advantages and provide better avenues to fulfil and enhance the potentials of growth and expansion both domestically and internationally. This potential alliance will allow capturing major commercial and operational synergies of service-oriented platforms and human resources, financial, marketing and management expertise capabilities of both companies, in turn would lead to value creation for all the stakeholders, including respective shareholders of each company. The move is subject to the outcome of relevant due diligence exercises to be conducted by each party, detailed joint valuation exercise, with the respective shareholders and all relevant regulatory approvals, along with other customary closing conditions.

Qatar Central Bank has provided in-principle no-objection to both companies, subject to compliance with all provisions as set out in Articles 162 and 163 of Law No. 13 of 2012 on issuing the Law on Qatar Central Bank and the Regulation of Financial Institutions.