Oman: Al Anwar completes partial sale of stake in Falcon Insurance
Source: Middle East Insurance Review | May 2017
Al Anwar Holding said that it has sold 1.30 million shares of Falcon Insurance at OMR1.876 (US$4.87) per share. Out of the total sale proceed of OMR2.432 million, 10% will be deposited by the buyer in escrow account, which will be released after one year, according to a disclosure statement posted on the Muscat Securities Market website.
This is subject to the conditions prescribed under escrow agreement. The remaining OMR2.189 million will be received on settlement date, the disclosure statement added.
Simultaneously, Falcon Insurance has acquired all businesses, assets and liabilities of Omani branches of Arabia Insurance, against issuance of shares in Falcon Insurance on the agreed terms and as approved by the relevant regulatory authorities.
Subsequent to above transactions, Al Anwar will retain 19% stake in Falcon Insurance Company (merged entity) and hence, this investment ceased to be subsidiary as on 28 March 2017 and would be treated as associate for the subsequent period.
This transaction has generated a profit of OMR0.166 million on sale of stake and a fair value gain on the remaining stake of OMR0.263 million in the group consolidated financials of Al Anwar. M
OMR1 = US$2.6