UAE: Sukoon signs an agreement to acquire a majority stake of ASCANA Takaful
Source: Middle East Insurance Review | Feb 2023
Sukoon announced in December that it had signed a share purchase agreement to acquire a majority stake (in excess of 93%) in Arabian Scandinavian Insurance Company – Takaful (ASCANA Insurance).
The execution of the transaction remains subject to regulatory approvals including approvals from the Securities and Commodities Authority and the UAE Central Bank, Sukoon said in a statement.
This proposed acquisition is aligned with Sukoon’s strategy to diversify its sources of business while also consolidating its presence in the UAE and in the GCC. The planned acquisition will allow Sukoon to enter the takaful market while leveraging its expertise and know-how whenever needed.
“The takaful market is an important and growing one. We are very pleased with this transaction that will not only strengthen our market position but will also broaden our ability to meet more customer’s needs. With this transaction, we are also capitalising Ascana’s deep expertise in the takaful market. Our objective will be to ensure that Ascana could leverage as much as possible our own capabilities, notably in terms of underwriting and digital, to increase its customer reach and further improve their customer experience,” said Sukoon CEO Jean-Louis Laurent Josi.
In its statement, Sukoon confirmed that it will comply with all its obligations under the laws of the UAE including laws issued by the Securities and Commodities Authority and the Dubai Financial Market.
In addition, Sukoon confirmed that, post executing the transaction, it will submit an offer to the remaining shareholders of ASCANA to grant them the option to sell their shares to Sukoon or to remain as a shareholder in ASCANA in accordance with the merger and acquisition rules of the Securities and Commodities Authority. M