The Financial Regulatory Authority (FRA) has approved a capital increase of EGP200m ($4.2m) proposed by Delta Life Insurance Company. The increase will be implemented through a bonus issue.
Following the increase, the insurer’s issued and paid-up capital will rise from EGP400m to EGP600m, with the new total capital comprising 50m shares with a nominal value of EGP4 each. The life insurance company’s authorised capital is set at EGP700m.
Delta Life's shareholders include the non-life insurer, Delta Insurance Company, which owns approximately 99.9% of the life company.
Delta Insurance is currently a takeover target. One of Morocco’s leading insurers, Wafa Assurance, aims to acquire up to 125m shares representing the entire capital of Delta Insurance, at a price of EGP40 per share, with a minimum acquisition of 51% of the target company's capital. The total value of the tender offer is EGP5bn. The offer period started on 29 September 2025 and ends on 27 October 2025.
Wafa's plan following the acquisition of Delta Insurance
Wafa, listed on the Casablanca Stock Exchange, already operates in the Egyptian life insurance market through its subsidiary, Wafa Life Insurance Egypt. The latter will be merged with Delta Life following the acquisition of Delta Insurance.
The FRA has set several commitments to be adhered to by Wafa Assurance in the M&A deal, including:
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to purchase all of the shares offered for sale in response to the purchase offer, with a minimum of 51% of the total shares of Delta Insurance, while continuing all of the target company's activities and existing projects in Egypt
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not to lay off workers in Delta Insurance for at least one year from the date of implementation of the purchase process, except in accordance with the provisions of the Labour Law and other applicable laws
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not to sell the acquired Delta Insurance shares within the first year from the date of implementation of the purchase process, and
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not to merge Delta Insurance into other companies within the first year from the date of implementation of the purchase process.
Wafa intends to delist the shares of Delta Insurance from the Egyptian Exchange.