Dar Al Takaful has executed a conditional offer letter to Noor Investment Group and Noor Bank to acquire 100 per cent of the shares of both Noor Takaful General and Noor Takaful Family. Under the terms of the offer letter the parties have entered into exclusive discussions to finalise definitive transaction documents towards completion of the transaction.
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 and Noor Takaful Family 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 Noor Takaful Family, Noor Takaful General and Dar Al Takaful will remain unchanged and in full effect.
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."
Emirates NBD Capital Limited is acting as the sole financial advisor on this transaction, Baker McKenzie Habib Al Mulla is acting as the legal advisor, Deloitte is acting as the financial and IT diligence advisor and Milliman is acting as the actuarial diligence advisor on the transaction.