Dubai – Mubasher: Islamic Arab Insurance Company (Salama) has sold 4.5 million shares out of 7.5 million shares in the capital of Salama Cooperative Insurance Company, a Saudi joint-stock company.
The shares were sold for an average price of SAR 14.19 per share, according to the company's disclosure to the Dubai Financial Market (DFM) on Monday.
The transaction will generate a cash inflow of SAR 66 million and have a positive effect on Salama's profits in the third quarter (Q3) of 2020.
This sale is in line with the company's strategy to focus on the local market and investments in the insurance sector in the UAE and boost cash dividends to shareholders.
It is noteworthy to mention that in the first half (H1) of 2020, Salama reported net profits of AED 47.05 million, compared to AED 33.33 million in the same period of 2019.