Kuwait: GIG to dispose of holdings in Buruj Cooperative Insurance
Source: Middle East Insurance Review | Apr 2024
Gulf Insurance Group has signed a binding agreement to sell its entire stake in Saudi Arabian insurer Buruj Cooperative Insurance Company.
Under this agreement announced in February 2024, GIG would sell all of its 8.55m shares, which represent 28.5% in Buruj to Cigalah Trading Establishment, according to a statement lodged with Boursa Kuwait. Both GIG and Cigalah are founding shareholders of Buruj.
The sale will be made through a private deal for SAR121.8m($32.49m), provided that the value of the deal would be determined in Kuwaiti dinars when the deal is executed and the value is received.
The deal is pending the completion of a number of conditions, including obtaining the necessary approvals from all relevant regulatory authorities in Saudi Arabia.
Buruj, a non-life insurer, was established in 2008. Its roots go back to 1979 when it was operating through a local agent under the name of Saudi Pearl Insurance Company and registered in Bahrain. After the issuance of insurance regulations in Saudi Arabia, Saudi Pearl and its owner GIG, along with other major business groups and Saudi businessmen, established Buruj Cooperative Insurance Company. M