Canadian insurance company Fairfax Financial has completed the acquisition of a majority equity stake in Gulf Insurance Group (GIG).
The transaction involved purchasing GIG shares from Kuwait Projects Company and its affiliates, which represented approximately 46.32% of GIG’s equity.
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As per the initial announcement in April, the deal was valued at $860m at a rate of Kd2 ($6.5) per share.
Following the closure of the deal, Fairfax’s equity interest in GIG rose from 43.69% to over 90%, solidifying its control over the insurance group.
GIG, an insurer operating in the Middle East and North Africa, will continue to be led by Khaled Saoud al Hasan, group CEO of GIG, and Paul Adamson, CEO of GIG Gulf.
In line with the Capital Markets Authority of Kuwait’s regulations, Fairfax plans to launch a mandatory tender offer to acquire the remaining shares of GIG in the first quarter of 2024.
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By GlobalDataFairfax is a holding company engaged in property and casualty insurance, reinsurance, and investment management through its subsidiaries.
It expects to strengthen its position in the insurance sector with this acquisition.
With Fairfax’s international insurance experience in more than 40 countries, this move is anticipated to be advantageous to GIG too.
Fairfax chairman and CEO Prem Watsa said: “We are thrilled to have GIG and its experienced and talented team led by Khaled Saoud Al Hasan and Paul Adamson join the Fairfax Group.
“GIG has a very strong presence in the Middle East and North Africa region, and we look forward to working with Khaled, Paul and the entire GIG team to further develop GIG’s business over the long term.”
In May this year, Brit, a subsidiary of Fairfax, completed the sale of Ambridge Group to Amynta Group.
The $400m deal covered Ambridge’s US and international divisions in Germany and the UK.
