Al Ahlia in talks with BNH over stake sale
Manama, April 1, 2014
By Avinash Saxena
Bahrain-based Al Ahlia Insurance will retain a separate corporate and brand identity despite the proposed acquisition of controlling stake by Bahrain National Holding Group (BNH).
Al Ahlia chairman Sofyan Adnan Khatib said, on the sidelines of the company's Annual General Meeting (AGM) at the InterContinental Regency Bahrain, that the majority shareholder based in Dubai wanted to exit the business and had approached BNH, reported the Gulf Daily News, our sister publication.
According to Khatib, during the initial talks the two entities were in agreement over Al Ahlia's status.
"This does not mean selling of the whole entity to BNH and basically would be a cash injection from the new majority stakeholder... Al Ahlia would continue to operate as it is without any major change to the structure," he said.
Khatib said the proposed deal had not moved beyond initial talks and a solid business proposal from the acquirer was yet to be tabled.
"It is a regulatory requirement that the buyer should present a comprehensive business plan before the cash injection," he said.
"We hope things move in the right direction soon," he added.
Earlier BNH chairman Farouk Almoayyed had confirmed that the proposed stake acquisition was under consideration although no decision had been taken yet.
BNH's wholly-owned subsidiary, Bahrain National Insurance Company offers general insurance and motor and personal lines insurance trades under the bni brand.
BNH also owns 75 per cent in Bahrain National Life Assurance Company, which offers life and medical insurance trades under the bnl brand.
The AGM saw approval being given to cash dividend of 5 per cent of paid-up capital, amounting to BD309,247 ($811,629).
Al Ahlia has reported a net profit of BD2.52 million for last year as against BD238,000 in 2012.
The positive turnaround was achieved by turning the operation loss of BD42,000 in 2012 into a profit of BD1,178,000 last year.
The company also saw an increase of 2 per cent in its business over the previous year, with the addition of new clients, despite the loss of certain clients on competitive quotes.
Al Ahlia has returned an investment profit of BD2.43 million last year as against BD1.09 million in 2012. -TradeArabia News Service