Al Anawar Holding on Tuesday said that the company has sold 1.30 million shares of Falcon Insurance at a price of OMR1.876 per share. Out of the total sale proceed of OMR2.432 million, 10 per cent will be deposited by the buyer in escrow account, which will be released after one year, according to a disclosure statement posted on Muscat Securities Market (MSM website.
This is subject to the conditions prescribed under escrow agreement. The remaining OMR2.189 million will be received on settlement date, the disclosure statement added.
Simultaneously, Falcon Insurance has acquired entire business, assets and liabilities of Oman branches of Arabia Insurance, against issuance of shares in Falcon Insurance Company on the agreed terms and as approved by the relevant regulatory authorities.
Subsequent to above transactions, Al Anwar Holdings will retain 19 per cent stake in Falcon Insurance Company (merged entity) and hence, this investment will cease to be subsidiary as on March 28, 2017 and would be treated as associate for the subsequent period.
This transaction has generated a profit of OMR0.166 million on sale of stake and a fair value gain on the remaining stake of OMR0.263 million in the group consolidated financials of Al Anwar Holdings.