UK headquartered Bupa yesterday announced it has completed an agreement for an increased 5% stake in Bupa Arabia for Cooperative Insurance (Bupa Arabia). This raises the total stake held by Bupa to 39.25%.
Regulatory approvals for the acquisition, which is a portion of Nazer Group’s stake in the company, have been granted by the relevant Saudi authorities.
The increase in Bupa’s stake in Bupa Arabia is in line with Bupa’s strategy of investing in its market position in geographies in which it already operates, as well as its ongoing commitment to meeting the healthcare needs of customers in the kingdom, the company says in a statement.
The acquisition of a stake is recognition of the opportunity to further develop the private health insurance market in Saudi Arabia, which the government has called a key growth sector and important pillar in its Saudi Vision 2030 Strategy.
In March 2018, Bupa had announced its intention to increase its stake in Bupa Arabia which is the largest health insurer in the Kingdom. The agreed price was SAR100 ($26.7) per share, leading to a deal worth around SAR400m.
Nazer Group will remain a shareholder in Bupa Arabia. Loay Nazer will continue as the chairman of the Bupa Arabia and Tal Nazer as CEO.