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GIG sells entire stake in Buruj Cooperative for SAR 122m

GIG sells entire stake in Buruj Cooperative for SAR 122m
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-0.42% 19.08 -0.08
0.55% 2,000.00 11.00

Riyadh – Mubasher: Buruj Cooperative Insurance Company has announced that its majority shareholder Gulf Insurance Group (GIG) entered a binding agreement to sell its entire stake in the company to Cigalah Trading Establishment for SAR 121.83 million.

Under the agreement, GIG will sell all its 8.55 million shares in Buruj Cooperative, which represents 28.50% of the company's capital, to the founding shareholder, Cigalah, according to a bourse filing.

The deal will be conducted through a private sale transaction subject to various conditions, including obtaining approval from regulatory authorities.

In December 2023, Buruj appointed Bader bin Saad Al Ghunaim an acting CEO for six months after former CEO Abdulrahman Al Dokheel resigned in November.

Buruj Cooperative turned to profitability during the first nine months (9M) of 2023, recording a net profit before Zakat of SAR 21.64 million, compared to net losses of SAR 25.35 million in the same period the year before.

In 2021, GIG completed the acquisition of the operations of the insurance giant AXA in the Gulf region for $474.75 million, including AXA Gulf and AXA Cooperative Insurance Company in Saudi Arabia.