(MENAFN- Muscat Daily) Muscat- Al Anwar Holdings and thirteen other minority shareholders of Falcon Insurance Co have entered into a sale & purchase agreement (SPA) with Arabia Insurance Co (AIC).
Arabia Insurance is acting through its subsidiaries Arabia SAL (holding company) and Lawrence Investment LLC (under formation).
In accordance with the SPA, Al Anwar will sell a 20.35 per cent stake in Falcon Insurance at RO1.876 per share, the company said in a filing with the Muscat Securities Market (MSM) on Wednesday.
Al Anwar has a 51.04 per cent holding in Falcon Insurance, according to the latest available financial statement on the MSM website.
Al Anwar said the share-purchase transaction is, however, subject to Falcon Insurance simultaneously acquiring business, assets and liabilities of Arabia Insurance Co (Oman branch), in accordance with the terms of a business transfer agreement signed by Falcon Insurance with Arabia Insurance and Arabia Holding. The transaction is also subject to Falcon Insurance and Arabia Insurance obtaining approval from the Capital Market Authority, the court, under Article 39 of the Insurance Law and other regulatory authorities as applicable.
Al Anwar said it is expects that the transaction to be concluded by end of March 2017. 'The transaction when concluded, would generate sales proceeds of RO2.4mn for Al Anwar Holdings, out of which ten per cent would be retained under an escrow account that would be released after completion of one year in accordance with the terms of escrow agreement.'
Al Anwar said the sale proceeds would be utilised to make new investments and/or to reduce the debt. It said that the profit generated out of the transaction would have no significant impact on the financials of Al Anwar.
Al Anwar shares closed 1.08 per cent higher at 187bz.
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