Bupa Arabia board recommends demerger into 2 companies

Bupa Arabia’s board recommended a corporate restructuring through a demerger into two companies

Bupa Arabia for Cooperative Insurance Co.’s (Bupa Arabia) board of directors recommended a corporate restructuring through a demerger into two companies, the firm said in a statement to Tadawul.

Under the proposal, all assets and liabilities related to the insurance business would be transferred to a new, wholly owned closed joint-stock company to be established as a result of the demerger, in line with Article 231 of the Companies Law.

The company said the proposed demerger would include the transfer of insurance-related assets and liabilities, including customer insurance contracts and employee contracts in specified departments, to the newly formed entity, as detailed in a shareholder circular to be published later.

Bupa Arabia said the transaction is subject to approval by an extraordinary general assembly, which will be scheduled and announced in due course, and will consider the demerger and related amendments to the company’s articles of association.

Ahead of the meeting, the company said it will publish a circular to shareholders outlining details of the demerger, related risk factors, and other financial and legal information to enable informed voting.

The company said it will disclose any developments in accordance with applicable regulations.

According to Argaam data, Bupa Arabia received a no-objection from the Insurance Authority on Sept. 9, 2025, for a proposed restructuring aimed at transforming the company into a holding company.

The company said the plan includes separating the insurance business and transferring it to a new subsidiary, adding that it is currently finalizing details of the proposal as part of its ambition to become a leading national group in integrated healthcare.