RAKBank buys 79.23 per cent of RAK Insurance

The acquisition enables RAKBank to become the largest shareholder in the insurance provider.

By Issac John (associate Business Editor)

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Published: Fri 29 May 2015, 11:31 PM

Last updated: Thu 25 Jun 2015, 7:24 PM

Dubai: RAKBank said on Thursday it had acquired 79.23 per cent stake in Ras Al Khaimah National Insurance Company.The bank purchased a total of 87,154,981 shares at Dh3.64 per share through a tender offer.

The acquisition enables RAKBank, the sixth largest lender by market value on the Abu Dhabi bourse, to become the largest shareholder in the insurance provider and is in line with the bank’s strategy to become a broad-based financial services company, the lender, in which the government of Ras Al Khaimah has 49.3 per cent stake, said in a statement.

Mohammad Omran Alshamsi, RAKBank Chairman, said the acquisition is consistent with the bank’s key strategic objective of strengthening market share. “I am confident that this acquisition will deliver long-term value to all stakeholders.”

Peter England, RAKBank CEO, said RAK Insurance is a successful and well reputed insurance provider and he looked forward to growing the collective businesses in a very close partnership and to jointly develop a range of insurance products over time.

“We see a tremendous opportunity for growth in the Bank’s business by diversifying into complementary industries such as insurance that enhance revenue and market share and ensure that customers enjoy a more wholesome experience,” said England.

Founded in 1974, RAK Insurance is listed on the Abu Dhabi Securities Exchange and has a full licence to issue conventional general and life policies.

Andrew Smith, RAK Insurance CEO, said his company would be able to further strengthen its client’s relations and help provide the bank with unique and innovative products and services. “This is an exciting opportunity for both parties and I look forward to continued success.”

With a total capital ratio of 24.2 per cent by end of March 31, 2015, RAKBank funded the entire acquisition through existing resources. Whilst RAK Insurance will become the bank’s preferred insurance partner, RAKBank will continue to bring to its customers a range of insurance products from other providers as per its current arrangements to ensure that customers can choose from a wide range of products to suit their needs. The Bank has 35 branches and over 200 ATMs throughout the UAE.

issacjohn@khaleejtimes.com



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