With the successful end of the creditor’s notice period, the plan to merge Dar Al Takaful (DAT) and Watania to create the UAE’s largest takaful company continues towards completion at end June 2022.
In compliance with the federal decree law on commercial companies, DAT and Watania issued a notice to its creditors on 27 April 2022 in respect of its merger. The objection period for creditors to provide their opinions and feedback lasted 30 days and expired on 26 May 2022. Furthermore, in accordance with the Federal Law on the Establishment of Insurance Authority and Regulation of the Insurance Business, Watania also issued a notice to policyholders on 27 April 2022 in respect of its merger. The objection period for policyholders was 45 days and they were expected to have provided their opinions and feedback by 10 June 2022
DAT and Watania received no objection to the merger from both their creditors and will continue the merger procedures in accordance with the Commercial Companies Law. The merger was approved overwhelmingly by shareholders of the two companies at their annual general meetings on 26 April 2022.
DAT chairman Matar Hamdan Sultan Hamad Al Ameri said, “As we progress towards completing this exciting transaction, we are actively preparing for our integration of all aspects of the two companies into a single takaful powerhouse for the benefit of customers and other stakeholders.”
Watania chairman Ali Saeed Bin Harmal Aldhaheri said, “The operational synergies from the merger and the fusion of the energy and ideas of both companies will enable us to offer many compelling solutions to the market, delivered by a stronger IT and commercial platform and financial framework.
Under the merger plan, shareholders of Watania will receive shares in DAT, which would be the remaining entity that will continue to be listed on Dubai Financial Market. Watania shareholders would receive 0.734375 DAT shares for every Watania share that they own, valuing the merged company at AED260m ($70.8m). All DAT and Watania policies will be held by two DAT subsidiaries: Noor Takaful Family and Noor Takaful General.
Preliminary regulatory approvals have been obtained from the Central Bank and the Securities and Commodities Authority, and the transaction is subject to their final approvals. The proposed chairman of DAT after the merger would be Dr Aldhaheri, and the vice chairman would be Mr Al Ameri.