RAKBank to offer Dh3.64 per share for majority stake in RAK National Insurance



National Bank of Ras Al Khaimah will acquire a majority stake in Ras Al Khaimah National Insurance Company.

The shareholders of the bank approved the acquisition at Dh3.64 per share yesterday. The stock closed at Dh3.70 yesterday.

It was not known how much of Ras Al Khaimah National Insurance (RAKNIC) the bank planned to acquire. The Abu Dhabi-listed insurance company has a market capitalisation of Dh407 million.

Also known as RAKBank, the institution has a market cap of Dh16.09 billion and 34 branches.

The Ras Al Khaimah Government owns nearly 50 per cent in both RAKBank and RAKNIC.

The insurance company has total liabilities of Dh282.74 million in the six months at the end of June, up from Dh264.39m at the end of December. It posted profits of Dh26.10m for the first half, down from Dh27.47m in the same period previous year.

The company provides general insurance, including fire, marine, motor and accident cover.

Net profits for the RAKBank group during the first half declined to Dh700.43m, down from Dh760.07m in the first half. It also includes four subsidiaries, including RAK Islamic Finance.

The insurance sector in the Middle East is gearing up for more mergers and acquisitions because of the unsustainability of small to medium-sized insurers and tougher compliance requirements, according to a report from the accounting firm PwC in February. Banks are also seeking to boost their margins by adding fresh revenues from the sale of insurance policies.

“Today, we see a tremendous opportunity for growth in the bank’s business by diversifying into complementary industries, particularly the local insurance market, which is estimated to exceed Dh30 billion this year,” said Peter England, the chief executive of RAKBank.

It emerged that the bank was in discussions to acquire a stake in the insurer last month.

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To be taxed:

Flavoured water, long-life fruit juice concentrates, pre-packaged sweetened coffee drinks fall under the ‘sweetened drink’ category

Not taxed

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Aston Villa 0

Red card: Fernandinho (Manchester City)

Man of the Match: Raheem Sterling (Manchester City)

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Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
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Stamp duty timeline

December 2014: Former UK finance minister George Osbourne reforms stamp duty, replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:
Up to £125,000 - 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; Over £1.5m – 12%

April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.

July 2020: Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.

March 2021: Mr Sunak decides the fate of SDLT holiday at his March 3 budget, with expectations he will extend the perk unti June.

April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.

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Manchester United 1

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Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

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