Bupa to raise stake in Bupa Arabia to 34.25%

15/05/2017 05:42 AST

Bupa is planning to increase its shareholding in Bupa Arabia from 26.25% to 34.25%. This follows an agreement on the acquisition of a portion of ASAS' (a Nazer Group Company) stake in Bupa Arabia resulting in an 8% increase of Bupa's stake to 34.25%. This transaction builds on the two organizations' long and successful 20-year partnership since the commencement of operations in Saudi Arabia in 1997.

Bupa Arabia was founded in 2008 and under its joint strategic partnership, it has generated consistent growth and has become one of the leading health insurance providers in Saudi Arabia serving over 3 million customers. This move is recognition of Bupa Arabia's strong market position and underlines Bupa's commitment to further develop the private health insurance market in the KSA, a key growth sector acknowledged in the Saudi Government's Vision 2030 Strategy.

The agreed price of SR143 per share, totaling SR915.2 million reflects the partners' confidence in the strong future prospects of Bupa Arabia.

Following the conclusion of the transaction, Nazer Group will continue as a shareholder in Bupa Arabia. Both parties are pleased to confirm that Loay Nazer intends to continue as the Chairman of the Bupa Arabia Board and Tal Nazer as CEO.

The closing of the transaction is subject to the customary regulatory approvals. Loay Hisham Nazer, Chairman of Bupa Arabia and Founder and Chairman of Nazer Group, said: "We appreciate the constructive long-term partnership that we have forged with Bupa over the past 20 years. At Nazer Group, we see a bright future ahead for Bupa Arabia. We remain committed to supporting its long-term success through our continued shareholding and through my role as the Chairman of the Board and Tal Nazer's position as CEO."

Wayne Close, Acting CEO Bupa International Markets, said: "We are absolutely committed to meeting the health and wellbeing needs of customers in the KSA. This decision is not only recognition of Bupa Arabia's success but underlines Bupa's ongoing commitment to develop the private health insurance market in the KSA, where there is huge potential. This will also be a fantastic step forward in the delivery of Bupa International Markets' strategy, offering further opportunities for strong and sustainable growth."

Saudi Gazette