Bupa Arabia gets IA approval to become holding company

Logo of Bupa Arabia for Cooperative Insurance Co.

Bupa Arabia for Cooperative Insurance Co. received, on Sept. 9, a no-objection letter from the Insurance Authority (IA) regarding its restructuring proposal to transform into a holding company.

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In a statement to Tadawul, the company said the plan involves separating its insurance operations and transferring them to a newly established subsidiary. Bupa Arabia is currently working on finalizing the details of the restructuring plan.

The company noted that the proposal remains subject to approval by shareholders at an extraordinary general meeting (EGM), which will be scheduled and announced, in addition to completing other related regulatory procedures.

Bupa Arabia added that it will issue a circular to shareholders outlining the details of the proposed spin-off of its insurance business well ahead of the EGM, to ensure shareholders are able to make informed decisions on the related decisions.

As part of the process, the company appointed Lazard Saudi Arabia as its financial advisor and Zeyad Khoshaim Co. (K&A) as its legal advisor for the restructuring.

The restructuring plan reflects Bupa Arabia’s ambition to become a leading national group in integrated healthcare and to contribute to advancing the Kingdom’s broader healthcare objectives under Vision 2030.

Bupa Arabia confirmed that this announcement has no financial impact, its current operations remain unaffected, and business will continue as usual.

Any significant developments will be disclosed in due course in line with applicable regulations, the statement added.