Solidarity Group announces the signing of a Letter of Intent (“LoI”) for a proposed merger between its flagship subsidiary, Solidarity Bahrain B.S.C. and T’azur Company B.S.C. (c).
Solidarity Group Holding Bahrain, one of the largest Takaful group in the world, announced the signing of a Letter of Intent (“LoI”) between its subsidiary, Solidarity Bahrain B.S.C. and T’azur Company B.S.C. (Closed) on 2nd November 2020.
Currently, both Solidarity Bahrain and T’azur are amongst some of the leading operators within the overall insurance industry in Bahrain. Prospective Merger between the two would be executed via transfer of business, assets and liabilities from T’azur to Solidarity Bahrain against issuance of ordinary shares in Solidarity Bahrain at a mutually agreed swap ratio.
As per the LoI, the scope of the proposed merger includes primarily the Bahrain operations (assets and liabilities) of T’azur as well as certain specific assets and or investments relating to its operational presence outside the Kingdom of Bahrain. Subject to final regulatory and shareholder approvals, Solidarity Group expects to finalise the merger during 2021.
Mr. Ashraf Bseisu, Group Chief Executive at Solidarity Group Holding, and Vice Chairman of Solidarity Bahrain stated: “The proposed transaction represents a remarkable feat as it constitutes the second M&A initiative for the Group’s subsidiary in Bahrain in a span of 3 years. Following closely on the heels of recent acquisition and merger of Al Ahlia Insurance, the proposed amalgamation between Solidarity Bahrain and T’azur would create a merged entity with a significantly large portfolio, wide array of products and leverage the synergy between the two operations to enhance value for all stakeholders.”
He also added: “Signing of the LoI represents the achievement of an initial but important landmark and that the Solidarity Group will continue to work with all the stakeholders, particularly the Board of Directors of Solidarity Bahrain and under the guidance of Central Bank of Bahrain to help steer the proposed merger towards a timely and successful completion.”.