UAE – Mubasher: The shareholders of Dar Al Takaful(DAT) and National Takaful Company (Watania) have granted their green light for a merger that will result in setting up the UAE’s largest Takaful provider by market share at a value of AED 260.15 million.
The merger will involve a share swap, by which Watania’s shareholders will receive 0.734375 shares in Dar Al Takafulfor every one owned share in the ADX-listed company.
Expected to be completed at the end of June 2022, the merger aims to unlock value for the stakeholders of both entities due to the considerable cost and revenue synergies, according to a press release.
The merger process’ policies would be held by two of Dar Al Takaful’s subsidiaries; Noor Takaful Family and Noor Takaful General.
Matar Hamdan Sultan Hamad Al Ameri, Chairman of Dar Al Takaful, said: “The transaction would enable Dar Al Takaful to expand not only within the UAE, but potentially across the region, fulfilling a core objective of Takaful by broadening its base of policyholders and supporting profitability in the pool.”
Al Ameri added: “The merger would also support the UAE’s expanding role as a global leader in Islamic finance.”
During the first nine months (9M) of 2021, Watania recorded net profits worth AED 7.65 million, an annual drop of 56.90% from AED 17.76 million.