Business Reporter -
MUSCAT, JAN 18 -
Al Anwar Holdings SAOG (AAH), an Oman-based company listed on the Muscat Securities Market, has announced that it will be divesting part of its holding in Falcon Insurance Company SAOC.
The company said in a filing to the Capital Market Authority that the divestment will take place under an Agreement for the Sale and Purchase of Shares (SPA) entered into by Al Anwar Holding and 13 minority shareholders of Falcon Insurance with Arabia Insurance Company SAL (acting through its subsidiaries Arabia SAL [holding company] and Lawrence Investment LLC [Under Formation]).
In accordance with the agreement, Al Anwar Holding will sell a 20.35 per cent stake at a price of RO 1.876 per share. The share purchase transaction is however, subject to Falcon Insurance simultaneously acquiring business, assets and liabilities of Arabia Insurance Company SAL (Oman Branch), in accordance with the terms of a Business Transfer Agreement signed by Falcon Insurance with Arabia Insurance Company SAL and Arabia Holding.
It is also subject to Falcon Insurance and Arabia Insurance Company obtaining approval for the transaction from the CMA, the Court, under article 39 of The Insurance Law and other regulatory authorities, as applicable.
“The transaction when concluded, would generate sales proceeds of RO 2.4 million for Al Anwar Holding, out of which 10 per cent sales proceeds would be retained under escrow account that would be released after completion of one year in accordance with the terms of escrow agreement,” Sanjay Kumar Tiwari, Acting Chief Executive Officer, Al Anwar Holding, said in the filing.
“The sale proceeds would be utilised to make new investments and/or to reduce the debt. The profit generated out the transaction would have no significant impact on the financials of Al Anwar Holding. It is expected that the transaction would be concluded by end of March, 2017,” he added
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