Dubai Investments Company, listed on the Dubai Financial Market, intends to acquire the all the shares of the National General Insurance Company.
The shares of the National General Insurance Company are listed in the Dubai market, at a price of 3.12 dirhams per share.
Dubai Investments indicated in a disclosure to the Stock Exchange that the period for receiving sellers’ offers will start on December 29. It will continue until January 19 next, the company said.
Dubai Investments owns about 45% of the shares of the National Insurance Company. The Commercial Bank of Dubai owns about 17%, and the rest is distributed among individual investors.
The issued capital of the National Insurance Company is about 149.5 million dirhams, and its share is trading at 3.17 dirhams.
According to the financial statements on September 30, the insurance company has a cash liquidity of 244 million dirhams. The amount is distributed between fixed deposits and bank balances.
The company achieved a net profit in the third quarter of this year of 20.6 million dirhams. The net profit since the beginning of the year until the end of last September amounted to 54.7 million dirhams.
The rise of the share
Dubai Investments’ stock started Wednesday’s session with a rise of more than 2%. This coincides with the company’s announcement of submitting an offer to acquire National General Insurance.
By 10.3 a.m. of today’s session, the company’s share rose by 2.08% at a price of 1.96 dirhams per share.
Meanwhile, the value of trading on the stock reached about 3.9 million dirhams, with a trading volume of 2.007 million shares.
Dubai Investments announced that it had submitted an offer to acquire all or part of the shares of the National General Insurance Company owned by the shareholders of the National Insurance Company. The offer price would be 3.12 dirhams for each share.
Dubai Investments sent a notification of the offer to the shareholders of the National Insurance Company, pointing out that the period of objection to non-receipt of the offer notification is 30 days from the date of announcing the offer on the Dubai Financial Market.
On Tuesday, the UAE stock closings varied, as the Dubai Financial Market continued its upward march for the ninth consecutive session, with market gains of more than 28 billion dirhams.
The support was derived from the successive announcement of huge expected listings. The Abu Dhabi market declined, with banking and energy shares subjected to partial and accrued profits, in exchange for purchases targeting investment and communications shares.