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Shareholders of Takaful Emarat will vote during a general assembly on 14 June, to either continue the company’s activities or dissolve it as a result of accumulated losses reaching 120% of share capital. They will also consider whether to amend a previous resolution to raise the capital increase planned earlier.
The Islamic insurer’s losses reached AED 190 million ($51.7 million) in the first quarter of 2024.
Voters will consider a special resolution to dissolve the company, and another on whether to change a planned capital increase, which was passed in February, from AED 125 million to AED 185 million, taking it to AED 210.6 million, by way of a rights issue, a filing to Dubai Financial Market (DFM) said.
The insurer’s losses have been previously attributed to factors including technological investments not yielding desired output, write-offs of bad debts and a merger and acquisition project from 2020-2022 that meant the entity ‘preferred to write business with other companies’.
Takaful Emarat had planned to merge with Dubai-listed Salama, but the merger was abandoned.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
