Islamic Arab Insurance Co. Terminates Acquisition Agreement with AMAN
Islamic Arab Insurance Co. (Salama) has announced the termination of its partial acquisition agreement with Dubai Islamic Insurance and Reinsurance (AMAN).
Summary
Islamic Arab Insurance Co. (Salama) has decided to terminate its partial acquisition agreement with Dubai Islamic Insurance and Reinsurance (AMAN) due to unmet requirements.
Islamic Arab Insurance Co. (Salama), a leading provider of takaful insurance in the United Arab Emirates, has announced the termination of its partial acquisition agreement with Dubai Islamic Insurance and Reinsurance (AMAN). The decision was communicated through a press release dated 26 September 2024.
According to the press release, Salama had initially intended to acquire the General and Group Life portfolio of AMAN, subject to regulatory approvals. This move was aimed at safeguarding and enhancing the interests of both shareholders and policyholders. However, the acquisition was contingent upon meeting certain requirements, which have not been satisfactorily fulfilled.
The Board of Directors of Salama has therefore decided not to proceed with the intended acquisition. The company has officially notified AMAN of its decision to terminate the agreement in accordance with its terms and conditions.
This development comes after Salama had provided an update on the acquisition on 13 June 2023, indicating its initial intent. The termination of this agreement may raise questions among investors and stakeholders about the company's future strategy and growth plans.
Despite this setback, the future of Salama remains optimistic. The company continues to operate robustly in the takaful insurance sector, adhering to Islamic Shari'a principles. The decision to terminate the acquisition indicates a cautious and prudent approach by the Board of Directors, prioritizing the long-term interests of shareholders and policyholders.
Investors should consider holding their positions in Salama. The company's decision reflects a commitment to due diligence and regulatory compliance, which are positive indicators for its long-term stability and growth.
In conclusion, while the termination of the acquisition agreement with AMAN may seem like a setback, it underscores Salama's commitment to its core values and strategic objectives. The company's cautious approach should reassure investors of its long-term potential.
Source
Summary
On 26 September 2024, Salama informed the Dubai Financial Market and AMAN of its decision to terminate the partial acquisition agreement of AMAN's General and Group Life portfolio. The acquisition, initially announced on 13 June 2023, was subject to regulatory approvals and specific requirements to protect the interests of shareholders and policyholders. As these requirements were not satisfactorily met, Salama's Board of Directors decided not to proceed with the acquisition. The termination was communicated in accordance with the agreement's terms and conditions. The notice was signed by Khaled Barakat, General Counsel and Board Secretary of Salama.
