Abu Dhabi's Watania says regulator approves 60.53% stake sale

Watania said MB UAE Investments would acquire 51% and Al Madina Insurance Co would take 9.53% ReutersPublished: 18:39 August 26, 2014Gulf News

27/08/2014 00:17 AST

Abu Dhabi-listed Islamic insurer National Takaful Co (Watania) said on Tuesday that United Arab Emirates regulators had approved the sale of 60.53 per cent of the firm to MB UAE Investments and an affiliate of MB.

Watania said MB UAE Investments would acquire 51 per cent and Al Madina Insurance Co would take 9.53 per cent. The group would buy a total of 90.8 million shares.

The deadline for the purchase is next Feb. 24, Watania said in the statement, noting that the regulatory approval did not constitute a commitment by the buyers to actually execute the deal. It did not give details such as the purchase price or who would sell the shares.

In a separate filing on the Oman bourse, however, Al Madina said it would buy 14.3 million Watania shares for Dh17.88 million ($4.87 million), implying it would pay Dh1.25 per share.

Watania's shares jumped 13.9 per cent to Dh1.23 in morning trade.

The company said in July that its majority shareholders had agreed to sell stakes to strategic investors from the Gulf. Among Watania's current shareholders are Abu Dhabi Investment Council, Ajman Bank and Abu Dhabi National Insurance Co, all with around 15.75 per cent of the firm.

Separately, National Bank of Ras Al Khaimah (RAKBank) is buying a majority stake in Abu Dhabi-listed insurer Ras Al Khaimah National Insurance Co for Dh3.64 per share, it was announced earlier this month.

Reuters