Dubai Investments makes open offer for Dubai insurer NGI's outstanding shares
Dubai Investments is already the biggest shareholder in DFM-listed NGI
Dubai: Dubai Investments has placed an open offer to buy “all or part” of shares held by others in the Dubai insurer, National General Insurance. The former is already the biggest shareholder in NGI, a move that was done through buying up the stake earlier held by Emirates NBD.
Dubai Investments is offering Dh3.12 for each NGI share in the open market. The offer period is open for 15 working days commencing December 29. The share was quoting at Dh3.17 early on Wednesday (December 14).
Earlier this year, Dubai Investments made two significant transactions to widen its NGI stake – first by picking up 21.53 per cent at the beginning of the second quarter and another 15.19 per cent in July. This was from Emirates NBD, which hitherto had been the principal shareholder in the in surer. (Dubai Investments was already holding 8.46 per cent in NGI prior to the deals.)
In a recent interview with Gulf News, Khalid Bin Kalban, Vice-Chairman and CEO of Dubai Investments, said the holding company was looking at smart diversifications. And that expanding its presence in insurance and financial services seems like the right thing to do.
Year of consolidation
This has truly been a year of consolidation for Dubai Financial Market with the takeover of DXB Entertainments by Meraas, Emaar Properties re-merger with Emaar Malls, and Damac founder Hussain Sajwani nearing full acquisition of the company.
Now comes the Dubai Investments move on NGI.
Acquiring an additional stake in NGI, and being the biggest shareholder in the company, reiterates our increased focus on a resilient insurance sector. The insurance market is set to expand further over the next few years and with NGI being ranked among the top providers in the UAE market