Dubai, Abu Dhabi companies merge to create new Takaful provider

Dubai, Abu Dhabi companies merge to create new Takaful provider

Shareholders of two UAE-based Islamic insurance (Takaful) companies approved a merger to create the a new Takaful provider. Dubai-based Dar Al Takaful (DAT) and Abu Dhabi-based Watania will be merged to create what is claimed to be the UAE’s largest Takaful provider by market share. The merger is expected to unlock value as a result of cost and revenue synergies, optimized sales channels, reduced operating expenses and enhanced IT platforms. The new entity would be positioned to expand its product offerings, and geographical footprint, while offering competitive terms and improved customer service. The new entity would also benefit from cross-selling opportunities through the increased geographic reach, as well as through capitalising on larger underwriting capacity. Based on the proposed structure, the merger will involve a share swap, whereby shareholders of Watania, now listed on the Abu Dhabi Securities Exchange, will receive shares in DAT, which would be the remaining entity that will continue to be listed on Dubai Financial Market. Under the terms of the merger, Watania shareholders would receive 0.734375 DAT shares for every Watania share that they own, valuing the merged company at Dhs260.15tn. The merger is expected to complete by end of June 2022. All DAT and