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Alinma Bank has doubled its stake in Arabian Shield Ins. to 11.5% after signing an off-market agreement to acquire Tokio Marine & Nichido Fire Ins. ’s full stake, according to two separate disclosures to Tadawul (here, and here). The transaction is expected to close by the end of March 2024, according to a TMNF press release (pdf) yesterday. Information about the size of the transaction wasn’t disclosed.
The rationale:The Tokyo-based company claims that its divestment decision is part of a strategy to improve its capital efficiency and diversify investments. Tokio Marine struck an agreement with Arabian Shield to see the company “continue serving Japanese clients” in Saudi Arabia.
Background: Tokio Marine and PIF-backed Alinma Bank established a JV dubbed Alinma Tokio Marine Company in 2012, which was then merged with Arabian Shield in November 2023. Tokio Marine & Nichido Fire is the non-life ins company of the global player Tokio Marine Holding.
Other shareholders: Saudi National Bank holds a nearly 9% stake in Arabian Shield, followed by Bahrain National Holdings (7.5%) and Sultan Holdings (7%).
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