Dubai: RAKBank will acquire majority stake in Ras Al Khaimah National Insurance Company (RAKNIC) following approval from the bank’s shareholders.

Shareholders voted in favour of the bank buying a majority stake at Dh3.64 per share during its ordinary general assembly held on Monday at the bank’s headquarters in Ras Al Khaimah. The acquisition will be done through an offer to all shareholders of RAKNIC.

Founded in 1974, RAKNIC is an insurance provider listed on the Abu Dhabi Securities Exchange (ADX) and has a full license to issue general and life policies of Conventional Insurance.

“We see a tremendous opportunity for growth in the bank’s business by diversifying into complementary industries, particularly the local insurance market. The Bank has undertaken a high level assessment of the value that could be created over the coming few years through the acquisition, and we believe the Bank can increase income streams, enhance our market presence, and create additional value for our shareholders.” said Peter England, CEO of RAKBank.

The acquisition is still subject to approval by the Central Bank and the Insurance Authority.