Saudi Re to acquire 49% stake in Probitas Holdings Bermuda for $25 mln

Saudi Re for Cooperative Reinsurance Co. (Saudi Re) has inked an agreement to acquire a 49.9 percent stake in Probitas Holdings Bermuda Limited (PHBL) for a total of $25 million.

The agreement includes acquiring 49.9 percent of Probitas ordinary shares and the ownership structure of three other subsidiaries, the insurer said in a statement on Tadawul.

The deal is conditional upon obtaining approvals from related regulatory bodies including the Saudi Arabian Monetary Agency (SAMA) and Lloyd’s market in the United Kingdom.

The transaction, which will be financed from Saudi Re’s internal sources, is not a related party transaction.

The deal gives Saudi Re the opportunity to expand its business activities, the insurer added.

PHBL is a limited liability company registered in Bermuda. It invests in the insurance and reinsurance business in the Lloyd’s insurance market.

Earlier this month, Saudi Re had signed a memorandum of understating (MoU) to acquire 49.9 percent of PHBL for an initial valuation of $25 million, Argaam reported.