Bank AlJazira seals deal to buy Solidarity Group's stake in AlJazira Takaful

Bank AlJazira’s headquarters

Bank AlJazira signed an agreement to purchase the 7.05% stake owned by Solidarity Group Holding in AlJazira Takaful Taawuni Co.

The agreement came after the bank has obtained the Saudi Central Bank’s (SAMA) no-objection on the move, according to a statement to Tadawul today, May 29.

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This transaction reinforces the bank’s commitment to enhancing the financial sector and expanding its footprint through diversifying its investments. It also reflected the bank’s confidence in the future growth of the insurance sector, the statement added.

Meanwhile, AlJazira Takaful received a notice from each of Bank AlJazira and Solidarity Group on the signing of an off-market share purchase agreement, under which Bank AlJazira would buy Solidarity Group’s entire stake in AlJazira Takaful, amounting to 4.65 million shares, representing 7.05% of the latter’s share capital. 

After the transaction’s completion, Bank AlJazira’s shares would reach 19.38 million, accounting for 29.36% of AlJazira Takaful’s share capital. Meanwhile, Solidarity Group will own no shares in AlJazira Takaful.

This is in accordance with the agreement concluded between the two parties, as per the Insurance Authority's approval on the private transaction, the company added.

AlJazira Takaful witnessed today a negotiated deal on 4.7 million shares, totaling SAR 76.2 million. The deal represented about 7.1% of its share capital, according to Argaam's data.