The Chairman and Board of Directors of Green Crescent Insurance Company called for an Extraordinary Shareholders Meeting of GCIC Shareholders to consider resolutions to expand the capital base of GCIC and forge a long-term strategic alliance with AXA Group and its UAE partner, the Kanoo Group.
Shareholders will be asked to approve resolutions to allow negotiations on a possible transaction through which AXA Group and Kanoo Group would be the primary investors of a capital increase of AED 100 Million via a convertible bond instrument, subject to shareholder and regulatory approval, pushing GCIC’s paid in capital to a total of AED 200 Million upon conversion and allowing GCIC to continue to grow their health insurance business and to optimize their product offering in the life insurance segment.
Commenting on the proposed deal, GCIC Chairman Sheikh Saeed Bin Hamdan Al Nahyan, said, “The linkage of GCIC’s extensive local market knowledge and technical experience with AXA’s deep industry expertise and capabilities represents a unique opportunity for GCIC to expand our product offering and market share.” He further noted “The proposed deal is expected to provide significant value creation for shareholders, enabling GCIC to further penetrate the UAE health segment while leveraging our life license to provide further growth in premiums and margins.”
GCIC’s Extraordinary Shareholders Meeting is scheduled for March 26, 2014 and shareholders will vote whether to authorize the board to pursue the deal. GCIC Managing Director and Interim CEO Mr. Nathan Kennedy, said, “He thought the deal represents a tremendous opportunity for GCIC shareholders” and highlighted that “the expansion of our capital base would provide GCIC with the opportunity to further invest in building scale and profitability in both the health and life segments.” He noted, “If shareholders and regulators approve, and if negotiations are successfully concluded with the investor group, GCIC should realize considerable growth in gross written premiums, further gains in cost efficiency, and improved profitability in 2014 and future years.”
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