Solidarity Bahrain acquires 29% stake in Alliance Insurance
Deal News | Nov 19, 2024 | Zawya
Solidarity Bahrain, a leading insurance firm from Bahrain and subsidiary of Solidarity Group Holding, has completed a significant acquisition by securing a 29% stake in Alliance Insurance, a top insurance company based in Dubai. This acquisition signifies Solidarity Bahrain's entrance into the UAE market, a strategic move that reaffirms its commitment to regional expansion and growth. The deal, worth 130.4 million dirhams, was approved by both the Central Bank of the UAE and the Central Bank of Bahrain. This transaction is Solidarity's first in the UAE and is part of its broader strategy to leverage its mergers and acquisitions expertise to explore consolidation opportunities and fortify its presence in the regional insurance market. The acquisition of 289,850 shares marks a pivotal step in Solidarity's ambition to augment its corporate footprint and provide value to stakeholders. The transaction is also poised to pave the way for further investment and expansion in the region, as Solidarity aims to increase its stake in Alliance Insurance, pending regulatory approval.
Sectors
- Insurance
- Financial Services
Geography
- Bahrain – Solidarity Bahrain is based in Bahrain, marking the country's role as the origin of the acquiring company.
- United Arab Emirates – Alliance Insurance is based in Dubai, UAE, and the article revolves around an acquisition in the UAE market, making it the pertinent geography of the target company.
Industry
- Insurance – The primary focus of the article is on the acquisition of a stake in Alliance Insurance by Solidarity Bahrain, which operates within the insurance sector. Both companies are integral players in life and general insurance, emphasizing the industry's role in the transaction.
- Financial Services – Involvement of Central Banks of the UAE and Bahrain for regulatory approvals highlights the broader financial services sector's role in facilitating international and regional investments and acquisitions.
Financials
- 130.4 million dirhams – The total consideration for the purchase of a 29% stake in Alliance Insurance.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Solidarity Bahrain | Bidding Company | Companies | A leading insurance provider in Bahrain and a subsidiary of Solidarity Group Holding, acquiring a stake in Alliance Insurance. |
| Alliance Insurance | Target company | Companies | A premier insurance company based in Dubai, offering life and general insurance, listed on the Dubai Financial Market. |
| Solidarity Group Holding | Parent Company | Companies | The parent company of Solidarity Bahrain, involved in overseeing the strategic acquisition and future plans. |
| Central Bank of the UAE (CBUAE) | Regulatory Authority | Government | Provided necessary approval for the acquisition as the regulatory body in the UAE. |
| Central Bank of Bahrain (CBB) | Regulatory Authority | Government | Provided necessary approval for the acquisition as the regulatory body in Bahrain. |