Alinma Bank signs agreement to acquire Tokio Marine’s 4.6M share stake in Arabian Shield

Logo of Alinma Bank

Alinma Bank signed an agreement to purchase shares of Tokio Marine & Nichido Fire Insurance (TMNF) in Arabian Shield Cooperative Insurance Co., constituting a 5.75% stake in the company's capital.

In a statement to Tadawul, the bank said the agreement was concluded following the receipt of non-objection from the Saudi Central Bank (SAMA) and the Insurance Authority (IA) on the purchase request.  

The bank aims to reaffirm its commitment to supporting the financial sector, expanding its presence by diversifying investments and reflecting positive aspirations for the future growth of the insurance sector.

In a separate statement, Arabian Shield acknowledged the receipt of notifications from Alinma Bank and TMNF on signing the agreement for the off-market purchase of shares.

Alinma Bank is set to acquire the entire stake of TMNF, totaling approximately 4.59 million shares, constituting a 5.75% share of Arabian Shield's capital.

According to the statement, Alinma Bank's stake in Arabian Shield after completing the deal will be about 9.18 million shares, representing 11.5% of the latter's shares, under the terms outlined in the agreement approved by the IA.