Al Anwar Holding agrees to sell Falcon Insurance stake
MUSCAT: Al Anwar Holding and 13 other minority stake holders of Falcon Insurance Company (FIC) have decided to sell their stake in FIC to Arabian Insurance Company (AIC) and Lawrence Investment. Both parties have entered into an agreement for sale and purchase of shares for divesting the stake.
According to the agreement, Al Anwar Holding will be selling 20.35 per cent stake at a price of OMR1.876 per share, according to a disclosure statement posted by Al Anwar Holding on the MSM website. The share purchase transaction is, however, subject to FIC simultaneously acquiring business, assets and liabilities of Arabia Insurance Company S A L (Oman branch), in accordance with the terms of a business transfer agreement signed by the FIC with the Arabia Insurance Company and Arabia Holding.
Also, FIC and AIC have to obtain approval for the transaction from the Capital Market Authority, the court, under article 39 of the Insurance Law and other regulatory authorities, as applicable.
The transaction, when concluded, would generate sales proceeds of OMR2.4 million for Al Anwar Holding, out of which 10 per cent sales proceeds would be retained under escrow account and the same would be released after completion of one year, in accordance with the terms of the escrow agreement. The sale proceeds would be utilised to make new investments or to reduce the debt. The profit generated out of the transaction would have no significant impact on the financials of the AAH.
It is expected that the transaction will be concluded by the end of March, 2017.