Dubai-listed Sukoon, formerly known as Oman Insurance Company, confirmed on Tuesday its plans to acquire a significant stake in Arabian Insurance Company – Takaful – Ascana Insurance. 

The company said it has signed a share purchase agreement to acquire a majority stake in excess of 93%. The deal was signed with the shareholders representing the stake and is still subject to regulatory approvals. 

However, in a separate statement, Ascana clarified that it’s not a party to the transaction. 

Sukoon said the acquisition is in line with its strategy to diversify its sources of business and consolidating its UAE and GCC presence, allowing it to enter the takaful or Islamic insurance market. 

The company said it will submit an offer to the remaining shareholders of Ascana, giving them the option to sell their shares to Sukoon or to remain as a shareholder in Ascana. 

“The takaful market is an important and growing one. We are very pleased with this transaction that will not only strengthen our market position but will also broaden our ability to meet more customer’s needs,” said Jean-Louis Laurent Josi, CEO of Sukoon. 

“With this transaction, we are also capitalising Ascana’s deep expertise in the takaful market. Our objective will be to ensure that Ascana could leverage as much as possible our own capabilities, notably in terms of underwriting and digital, to increase its customer reach and further improve their customer experience.” 

Ascana’s statement said the transaction remains subject to regulatory approvals from the Securities and Commodities Authority (SCA) and the UAE Central Bank.  

“As of the current date, Ascana has not been approached in respect of this transaction or in respect of an offer to the entirety of the shareholders,” the statement said. 

(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)