Dubai: Dar Al Takaful (DAT) announced on Sunday that it has entered into a legally binding share purchase agreement with Noor Investment Group and Noor Bank to acquire the entire share capital of both Noor Takaful General and Noor Takaful Family for a total consideration of Dh215 million in cash.
The company said in a statement file on Dubai Financial Market (DFM) website that it can confirm that there is no related party involvement in the transaction.
“The transaction is consistent with the company’s strategy to build scale and market share in fragmented market conditions. Given the complementary nature of the business of DAT and the Noor Takaful companies, DAT expects to generate synergies from the transaction,” DAT said in a statement.
The financial benefits of the transaction are likely to be realised in a timely manner after closing, when the target businesses have fully integrated with DAT.
The transaction has been approved by DAT shareholders, the Securities and Commodities Authority and the Insurance Authority and is expected to close in the second quarter of 2020, subject to other customary closing conditions.
The company’s financial statements are likely to reflect the financial impact of the transaction during the next reporting period after closing (Q3 2020).
Emirates NBD Capital Limited acted as the sole financial advisor, Baker McKenzie Habib Al Mulla acted as the legal advisor, Deloitte acted as the financial and IT diligence advisor and Milliman acted as the actuarial diligence advisor to DAT on the transaction, the statement concluded.