The most anticipated deals in the insurance sector, the Dar Al Takaful (DAT) and Watania merger reached a step closer with both organizations revealing that they have fulfilled another condition precedent in the process.
With the end of the 45-day policyholders’ notice period with no objections received, the deal is all set to create one of the leading Takaful providers in the UAE.
As per the statement, the deal is going through its final stages of obtaining regulatory approvals from the Central Bank and the Securities and Commodities Authority (SCA) and is on track for completion by end of June 2022.
As per the terms of the merger, Watania shareholders will receive DAT shares, which would be the remaining entity that will continue to be listed on Dubai Financial Market (DFM). Watania shareholders would receive 0.734375 DAT shares for every Watania share that they own, valuing the merged company at $70.78 million.
With the legal process underway, trading in Watania shares on Abu Dhabi Securities Exchange (ADX) has ceased as of the closing of the trading session on June 15, 2022, until the official delisting of the company from the Exchange.
All DAT and Watania policies would be held by two DAT subsidiaries:
- Noor Takaful Family and
- Noor Takaful General
“We have the vision and knowhow to immediately start executing our ambitious plans to build a national and regional Takaful leader that is strongly committed to product innovation, service excellence, productivity, and shareholder value creation. The insurance industry is on a growth trajectory as the region emerges into a new era following the worst impacts of the pandemic. We are building a strong, scalable, and adaptable business model that is based on best practices and underpinned by clear values that will be able to meet the changing demands of customers and the overall market.”
The official statement further emphasized that the merger is designed to create a transformational Takaful leader in the UAE’s fragmented insurance market, by leveraging synergies and economies of scale to create innovative new products and provide world-class customer service.
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