Abu Dhabi and Dubai, UAE: Another condition precedent was met further progressing the timeline and process to complete the proposed merger of Dar Al Takaful (DAT) and Watania.  With the successful end of the creditor’s notice period, the plan to create the UAE’s largest Islamic Insurance (Takaful) company continues to be smoothly on course towards completion at the 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 is 45 days and they are expected to provide their opinions and feedback by 10 June 2022. 

DAT and Watania received no objection to the merger from both their creditors, and therefore, they will continue the merger procedures in accordance with the Commercial Companies Law and upon the expiry of the policyholder’s objection period. The merger was approved overwhelmingly by shareholders of the two companies at their Annual General Meetings on April 26, 2022.

The merger is designed to create a transformational Takaful leader in the UAE’s fragmented insurance market, by leveraging synergies and economies of scale to create innovative new products and provide world class customer service.

Matar Hamdan Sultan Hamad Al Ameri, Chairman of DAT, 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. Together, Dubai-based DAT and Abu Dhabi-based Watania will provide superior terms and policy coverage across the UAE through a growing range of innovative products.”

Dr. Ali Saeed Bin Harmal Aldhaheri, Chairman of Watania, 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. We look forward to supporting the UAE’s global leadership in Islamic finance by raising the bar for the nation’s Takaful sector in performance and vision.”

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 AED 260 million. All DAT and Watania policies would 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. Ali Saeed Bin Harmal Aldhaheri, and the Vice Chairman would be Mr. Matar Hamdan Sultan Hamad Al Ameri.