After passing the creditors’ notice period, “Takaful House” and “Wataniya” announce the continuation of the merger procedures

The two companies, “Takaful House” and “National Takaful,” announced the continuation of the merger procedures between them in accordance with the commercial companies law in force in the country.

A statement revealed the completion of the two companies: “Takaful House” and “National Takaful” an important step within the proposed merger scheme between the two companies, by passing the creditors’ notice period, which paves the way for the completion of the merger process by June 2022, and supports the establishment of the largest provider of Takaful insurance services in the UAE .

Notification to creditors

The statement stated that, in accordance with the provisions of the Companies Law and the laws governing merger procedures, “Takaful House” and “Al-Watania” companies issued a notification on April 27, 2022, to their creditors, to file an objection to the merger, provided that this be done within 30 days from the date of the notification, pointing out that This period ended on May 26, 2022.

The statement added that the two companies published the merger decision in the Official Gazette, and issued another notice to insurance policy holders on April 27, 2022, to enable them to review the merger agreement, and submit any objection within 45 days from the date of publication, ending in June 10, 2022.

The statement stressed that due to the expiry of the objection period by the creditors of the two companies, and since no objection to the merger was received from them, the merger procedures will continue in accordance with the commercial companies law in force in the country.

Integration goals

The statement pointed out that the merger was approved by an overwhelming majority by the shareholders of the two companies at their annual general meetings on April 26, 2022.

The merger of the two companies aims to create a leading provider of Takaful services in the country's fragmented Islamic insurance market, by taking advantage of synergies, and economies of scale, to expand its offerings and products and provide world-class customer service.

Comprehensive coverage

Matar Hamdan Sultan Hamad Al Ameri, Chairman of the Board of Directors of Dar Al Takaful, said that the completion of this very important transaction constitutes a significant progress in the process of integrating all aspects of the two companies' businesses, which enhances our capabilities to provide a variety of family insurance services to a broader base of customers.

He added: "Dar Al Takaful, based in Dubai, and (National Takaful) based in Abu Dhabi, will provide competitive terms and comprehensive insurance coverage for all parts of the UAE, with a superior portfolio of insurance services and products."

Abilities and ideas

For his part, the Chairman of the Board of Directors of Wataniya Takaful, Dr. Ali Saeed bin Harmal Al Dhaheri, said: “We will be able to combine the operational capabilities of the two companies, and combine the ideas and energies of both companies, to provide many superior solutions to customers and stakeholders, by activating a better technological and commercial platform. and within an improved financial framework.

He added, "We look forward to supporting the UAE's position in the field of global Islamic finance, by raising the level of the Takaful insurance sector in the local market."

exchange stakes

Based on the proposed form, the merger will include a process of changing the shares, so that the shareholders of “National Takaful” listed on the Abu Dhabi Securities Exchange will obtain shares in the “Takaful House” company, which will remain listed on the Dubai Financial Market.

According to the terms of the merger, Wataniya Takaful shareholders will receive 0.734375 shares in “Takaful House” for every “share” they own in Wataniya, bringing the value of the new company to 260 million dirhams.

The "Noor Family Takaful" and "Noor General Takaful" of the "Takaful House" will be responsible for all the Takaful documents issued by the "Takaful House" and "National Takaful", while the "Takaful House" will remain the holding company that owns these two companies.

Initial approvals

According to the statement, the proposal has received initial regulatory approvals from the Central Bank and the Securities and Commodities Authority, and is now awaiting their final approvals.

It is also expected that Dr. Ali Saeed bin Harmal Al Dhaheri will occupy the position of Chairman of the Board of Directors, after the completion of the merger process, and Matar Hamad Sultan Hamad Al Ameri as Vice Chairman of the Board of Directors.

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