At an extraordinarily general meeting, Green Crescent’s shareholders agreed to authorise its board of directors to finalise negotiations with the two companies, who will become the primary investors of a capital increase of AED$100m at the company.
The increase will be paid via a convertible bond instrument and will push Green Crescent’s paid in capital to a total of AED$200m.
The health and life insurance provider will also change its name following the alliance, in order to include the names of both parties, although the new title is yet to be confirmed.
The company said it anticipated solid growth in written premiums and insurance margins following the alliance, and added that it hoped this would be reflected through positive financial over the next few years.
Green Crescent chairman Saeed Bin Hamdan Al Nahyan said: “We are confident that the linkage of Green Crescent’s extensive local market knowledge and technical experience with Axa and Kanoo’s deep industry expertise and capabilities in the Gulf Region represents a unique opportunity for Green Crescent to expand its market share and grow its margins, providing significant value for our shareholders.”
The deal was first announced in February following weeks of speculation and industry rumous, which included a refusal by AXA to comment on the situation.
At the time, Green Crescent said it hoped the acquisition would allow it to “continue to grow its health insurance business and to optimize its product offering in the life insurance segment”.
Green Crescent managing director and interim chief executive, Nathan Kennedy added that the deal represented a “tremendous opportunity for shareholders” and highlighted that “the expansion of our capital base would provide Green Cresecent with the opportunity to further invest in building scale and profitability in both the health and life segments”.
Green Crescent was founded in 2008 as a public joint stock company. It currently operates in the UAE, providing health and life insurance products to groups and individuals.
