A group of Lebanese and other Arab investors have made a bid to purchase no less than 67% of Arabia Insurance, according to a letter sent to shareholders of the company last week.
The price per share has been set at $7.90, provided that $7 per share be paid upon obtaining the necessary regulatory approvals and the conclusion of the transfer of shares. The second payment, $0.90 per share, be paid by 31 December 2021.
The deal has been approved by Arabia Insurance’s board of directors, the letter says. Shareholders are invited to an extraordinary general assembly on 3 July to vote on the proposed deal.
Shareholders who do not wish to sell their shares will, on completion of the deal, be entitled to exchange the shares they currently own with the shares of the company that will undertake the purchase.
Beirut-based Capital EE advisory firm represents the group of prospective investors.
Arabia Insurance was established in 1944 by a group of businessmen and currently has a presence in nine Arab countries.