MUSCAT: Al Anwar Holding and thirteen 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 FIC with 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 that would be released after completion of one year in accordance with the terms of escrow agreement. The sale proceeds would be utilised to make new investments or to reduce the debt. The profit generated out the transaction would have no significant impact on the financials of AAH. It is expected that the transaction will be concluded by end of March, 2017.
