Bupa Arabia shareholders approve split of assets, liabilities

Shareholders of Bupa Arabia approved a plan to split the company’s assets and liabilities

Shareholders of Bupa Arabia for Cooperative Insurance Co. approved a plan to split the company’s assets and liabilities between the existing entity and a newly established wholly owned closed joint-stock spin-off, according to a statement to Tadawul.

The approval was granted during the company’s extraordinary general meeting (EGM).

The split will be carried out in accordance with the Companies Law and relevant regulations. Under the plan, all assets and liabilities related to insurance operations, including insurance contracts with customers and certain employee contracts, will be transferred to the new spin-off, while the remaining activities will continue under the existing company.

Shareholders also approved that the spin-off would act as the legal successor to the company, subject to the EGM’s decision.

They further approved changing the company’s name to Bupa Arabia Holding (or a similar name approved by the Ministry of Commerce), while granting the trade name Bupa Arabia for Cooperative Insurance to the newly established spin-off.

In addition, net assets worth SAR 4.497 billion will be transferred as a contribution to the new company.