Solidarity Saudi units merger plan approved

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Solidarity Group Holding Bahrain announced shareholders have approved the proposed merger between its publicly listed associate in Saudi, Solidarity Saudi Takaful Company, and Aljazira Takaful Taawuni Company.

The merger between Solidarity Saudi and Aljazira Takaful was approved by an overwhelming majority of shareholders of both publicly-listed companies during extraordinary general assemblies.

Commenting on the deal, Abdulelah Al Qassimi, board member at Solidarity Group Holding and chairman of Solidarity Saudi, said: “We are very pleased to announce the final shareholder approval to the proposed consolidation between Solidarity Saudi and Aljazira Takaful.

“The transaction had previously secured regulatory approval from the General Authority of Competition, Saudi Central Bank, Capital Markets Authority and Tadawul in Saudi Arabia.”

He added that the group plans to consolidate its presence in the Saudi market through the merged entity.

“Support from strategic shareholders including Bank Al Jazira and Solidarity Group, are amongst few of the many factors expected to contribute to placing the merged entity amongst the top-tier insurance providers in Saudi Arabia,” said Mr Al Qassimi.

Solidarity Group Holding chief executive and Solidarity Saudi vice-chairman Ashraf Bseisu said, “Successful conclusion of this transaction is further testament of the group’s strategic drive in the past 10 years to develop in-house mergers and acquisitions know-how and capability. Studies and benchmarks indicate that around 50 per cent of M&A transactions globally fail to achieve their intended objectives.”

He said Solidarity has managed to consistently defy odds and create stakeholder value through a series of transactions spanning South East Asia, North Africa, and the Middle East.

“M&A has become a core pillar of the group’s corporate strategy, and we have managed to develop a team of professionals, majority of them Bahrainis, with extensive experience and competence across the entire M&A life-cycle, from initiation to integration,” added Mr Bseisu.

“Solidarity is a firm believer in consolidation as a pivotal market success factor going forward. The group continues to monitor and support the ongoing merger proceedings between its flagship subsidiary, Solidarity Bahrain with T’azur company.”

Solidarity also continues to explore inorganic expansion in existing markets and beyond.

avinash@gdn.com.bh

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