Dar Al Takaful (DAT) and National Takaful Co (Watania) announced the completion of their merger effective on 1 July 2022 pursuant to the merger plan announced on 3 March 2022, and after meeting all required regulatory and shareholders’ approvals.
As part of the merger completion process, trading in Watania shares on Abu Dhabi Securities Exchange (ADX) has ceased and the company officially delisted from the ADX on 30 June 2022, following receipt of the merger certificate issued by the Securities and Commodities Authority (SCA).
As a result, Watania shareholders received 0.734375 DAT shares for every Watania share that they owned, to create one of the leading national takaful providers, DAT, with total issued share capital of AED260m ($70.78m). The merged company is trading on the DFM under the ticker DARTAKAFUL, starting from 4 July 2022.
DAT chairman Dr Ali Saeed Bin Harmal Aldhaheri said, “As the takaful sector undergoes a significant transformation to move away from fragmentation towards consolidation, this merger has formed a scalable organisation with a client-centric and data-led approach to address the evolving needs of participants and to become the trusted ‘go-to’ partner for all our stakeholders. Our merger brought together two successful businesses to form a takaful insurance powerhouse able to leverage economies of scale to develop innovative Islamic insurance solutions in ways the market has yet to see.”
Mr Gautam Datta will continue in his role as the CEO of DAT, supported by a senior leadership team to drive DAT’s expansion, innovation and development as one of the new leaders in the takaful sector in the UAE, paving the way for further growth across the GCC region and beyond in the future, a statement issued by the company said.
Through the merger, DAT is strongly positioned to benefit from the realisation of significant cost and revenue synergies, reduced operating expenses and better IT platforms to expand its product offerings and geographical footprint, while maintaining its competitive edge in the market and enhancing its service excellence.
Mr Datta said, “Our merger delivered a step change in DAT’s scale and enhanced our financial strength and resilience. Driven by the combined talent pool, expanded infrastructure and partner network, and importantly our data-led approach, DAT is very well positioned to reach and meet the needs of a wider client base in the UAE addressable market and beyond.
“The takaful/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.” M