Islamic Arab Insurance sells 4.5 mln shares in Saudi-listed Salama

Islamic Arab Insurance Co. (SALAMA) announced the sale of 4.5 million shares out of 7.5 million shares owned in Salama Cooperative Insurance Co.’s capital.

The Islamic Arab Insurance said in a statement on the Dubai Financial Market (DFM) that the shares have been sold at AED 13.9 (SAR 14.19) per share.

The transaction took place from August 20, until August 27, 2020.

The Dubai-listed insurer pointed out that Salama exit will result in a cash inflow of AED 64.6 million (SAR 66 million) and a positive impact on the profit in Q3 2020.

The transaction came within the framework of the Islamic Arab Insurance’s new strategy, which focuses on the UAE market, supporting cash dividends to shareholders, and looking at investment opportunities in the UAE’s insurance sector.

According to data compiled by Argaam, Islamic Arab Insurance is the major owner of the Saudi-listed firm, Salama Cooperative Insurance, owning a 30% stake in the company, equivalent to 7.5 million shares.

The Dubai-based insurer narrowed its ownership in Salama Cooperative Insurance to 29.22% from 30% between Aug. 20 and 23.