Dar Al Takaful has executed a conditional offer letter with Noor Investment Group and Noor Bank to acquire I 00% of the shares of both Noor Takaful General and Noor Takaful Family.
Under the terms of the offer letter, the parties have entered into exclusive discussions to finalise definitive transaction documents towards completion of the deal, Dar Al Takaful says in a statement.
Completion of the deal is expected to take place in the second quarter of 2020, and is subject to shareholders' and regulatory approval. Post completion of the acquisition, Noor Takaful General and Noor Takaful Family will continue to conduct their business on an 'as is' basis. Further, during the execution and post completion of the deal, the takaful policies underwritten by each of Noor Takaful Family, Noor Takaful General and Dar Al Takaful will remain unchanged and in full effect.
Commenting on the transaction, Maj Gen (Ret'd) Abdulaziz Al Bannai, chairman of Dar Al Takaful, said, "The transaction, when completed, will allow Dar Al Takaful to build scale and market share in the UAE by consolidating the fragmented UAE insurance market, and diversify our existing business by adding family takaful (life) to the company's service offerings. The company expects to realise meaningful cost synergies from the transaction, which would allow us to offer better terms to our policyholders".
Emirates NBD Capital is acting as the sole financial advisor on this transaction, Baker McKenzie Habib Al Mulla is acting as the legal advisor, Deloitte is acting as the financial and IT diligence advisor and Milliman is acting as the actuarial diligence advisor.
Established in 2008, Dar Al Takaful is a Shariah compliant takaful provider licensed by Insurance Authority of the UAE for carrying out general takaful business and is listed on Dubai Financial Market. The Islamic insurer provides a comprehensive range of Islamic insurance products, services and specialised solutions to meet clients' requirements. Dar Al Takaful's business operations are Shariah-compliant and this aspect is overseen by a distinguished Fatwa and Shariah Supervisory Board.