BlueFive Capital eyes strategic investment in Gulf General Insurance

01/12/2025 06:35 AST

BlueFive Investments Holding (BlueFive Capital) has announced that it has executed a non-binding offer for a proposed investment in Gulf General Cooperative Insurance Company.

The offer was disclosed by GGI to the Saudi Stock Exchange and outlines a two-part transaction designed to strengthen the company's financial foundation.

The proposed transaction involves a capital reduction to reduce GGI's accumulated losses, and a capital increase.

Under this, BlueFive or a subsidiary will subscribe to the new shares for cash at a price of SAR10 per share, with a suspension of pre-emptive rights for existing shareholders.

This structure is intended to help clean up the Company's balance sheet and provide substantial new capital for its operations and growth strategy.

Hazem Ben-Gacem, Founder and Chief Executive of BlueFive Capital, said: "We are pleased to propose this investment in GGI, which is designed to reset the company's financial position and provide a clear path for sustainable growth."

The execution of the non-binding offer initiates an exclusivity period for a two-month term.

The offer will terminate upon the execution of definitive agreements, the mutual conclusion of discussions, or at the end of this period, unless extended by mutual agreement.

The proposed transaction is subject to conditions, including the successful negotiation and execution of definitive agreements between the parties and obtaining all necessary regulatory approvals

Also it should get approval from the company's extraordinary general assembly for both the capital reduction and capital hike.

"We see a compelling opportunity in the Saudi insurance market, and we look forward to partnering with GGI to enhance its market position and create significant long-term value for shareholders and policyholders alike," he added.

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