Investment plan includes a capital restructuring and a cash injection to fuel future growth
Gulf General Cooperative Insurance Co is listed on the Saudi Stock Exchange
BlueFive Investments Holding Ltd. (“BlueFive Capital”) announced today that it has executed a non-binding offer for a proposed investment in Gulf General Cooperative Insurance Co.
The offer was disclosed by GGI to the Saudi Stock Exchange and outlines a two-part transaction designed to strengthen the Company's financial foundation. The Proposed transaction involves a capital reduction to reduce GGI's accumulated losses, and a capital increase. BlueFive, or a subsidiary, will subscribe to the new shares for cash at a price of SAR 10 per share, with a suspension of pre-emptive rights for existing shareholders. This structure is intended to help clean up the Company's balance sheet and provide substantial new capital for its operations and growth strategy.
Hazem Ben-Gacem, Founder and Chief Executive of BlueFive Capital, said: “We are pleased to propose this investment in GGI, which is designed to reset the Company's financial position and provide a clear path for sustainable growth. We see a compelling opportunity in the Saudi insurance market, and we look forward to partnering with GGI to enhance its market position and create significant long-term value for shareholders and policyholders alike."
The execution of the non-binding offer initiates an exclusivity period for a two-month term. The offer will terminate upon the execution of definitive agreements, the mutual conclusion of discussions, or at the end of this period, unless extended by mutual agreement.
The Proposed Transaction is subject to conditions, including:
The successful negotiation and execution of definitive agreements between the parties.
Obtaining all necessary regulatory approvals
Approval from the Company's Extraordinary General Assembly for both the capital reduction and the capital increase.
For background on BlueFive Insurance, please visit: The BlueFive Newsroom
About BlueFive Capital
BlueFive Capital is a global investment platform that today has $8 billion in AUM and targets opportunities in high-potential economies with the goal of transforming traditional financial models and fostering sustainable growth. Incorporated in Abu Dhabi Global Market and with offices in nine cities including London, Abu Dhabi, Riyadh, Singapore and Beijing, the firm offers private equity, real estate, infrastructure and financial products to private wealth, institutional and retail clients.
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Contacts
Ayesha Daya
adaya@bluefivecapital.com
