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Tue 30 Oct 2012 05:25 PM

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Qatar Insurance backs $134m shares sale deal

Company's board approves sale of shares to state-owned fund Qatar Holding

Qatar Insurance backs $134m shares sale deal
(Photo for illustrative purposes only)

The board of Qatar Insurance has approved the sale of shares worth QR488.6m ($134.2m) to state fund Qatar Holding, the insurer said in a bourse filing on Tuesday.

The fund purchased 7.76 million shares at 63 riyals each, raising its capital to QR969.4m. The capital hike still requires the approval of the Ministry of Business and other regulatory authorities, as well as existing shareholders, the statement said.

Qatar Holding's presence as a strategic partner would strengthen the financial position of the company and help it to compete against major insurance companies at a regional and international level, the statement added.

The insurer said in August that it was in talks with Qatar Holding about it increasing its stake through the issue of new shares.

The Qatari government is already Qatar Insurance's largest shareholder, with 12 percent of the company, according to Thomson Reuters data.

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