DAT, Noor Takaful discuss acquisition

Dar Al Takaful PJSC has entered into exclusive negotiations to acquire Noor Takaful General PJSC and Noor Takaful Family PJSC. The company announced in a bourse disclosure that it has executed a condition offer letter with Noor Investment Group LLC and Noor Bank PJSC to acquire 100 percent shares of both insurance companies.

Completion of the transaction is expected to take place in the second quarter of 2020 and is subject to shareholder and regulatory approval. Post completion of the transaction, Noor Takaful General PJSC and Noor Takaful Family PJSC will continue to conduct their business on an ‘as is basis’. Further, during the execution and post completion of the transaction, the takaful policies underwritten by each of the parties involved will remain unchanged and in full effect.

Commenting on the transaction, Maj. Gen. (Retd) Abdulaziz Al Bannai, chairman of Dar Al Takaful said: “The transaction, when completed will allow Dar Al Takaful to build scale and market share in the UAE by consolidating the fragmented UAE insurance market and diversify our existing business by adding Family Takaful (Life) to the company’s service offering. The company expects to realise meaningful cost synergies from the transaction, which would allow us to offer better terms to our policy holders.”