23 June 2013
Clifford Chance advises on major regional insurance disposal
Clifford Chance has advised SLH Holding on the sale of a 25.7% stake in regional insurance leader Mediterranean & Gulf Insurance & Reinsurance Company (Medgulf) to ORIX Corporation, the major listed Japanese financial institution. The stake was valued at approximately US$225 million. Medgulf is the major shareholder in Medgulf Saudi Arabia, which is listed on the Saudi Tadawul. SLH is the majority shareholder in Medgulf.
The transaction further illustrates the growth and development of the insurance industry in the Middle East and its attractiveness to international investors. It is the second major corporate transaction involving Medgulf in the past year that Clifford Chance has advised on. In 2012, Clifford Chance advised Medgulf on the US$125 million investment by International Finance Corporation, a member of the World Bank Group.
The transaction completed on 20 June. Medgulf is now held 60.2% by SLH Holdings, 25.7% by Orix and 14.1% by International Finance Corporation.
Rupert Harper, Clifford Chance Corporate partner, comments: "We are delighted to have been involved in this transaction. It follows a positive trend we are seeing for increasing interest and activity in the regional insurance sector. We have assisted Medgulf and its shareholders in two key transactions now and we are proud to be aligned with yet another successful regional business attracting international capital."
The Clifford Chance team was led by Abu Dhabi based Corporate partner Rupert Harper and Banking & Finance partner Mohamed Hamra-Krouha. Rupert and Mohamed were supported by associates Jan Knop, Maria Sauliak and Nick Dilda.
Clifford Chance continues to be recognised for its cutting-edge work in the Middle-East with the Firm recently being named Middle East Law Firm of the Year by Chambers Global 2013 and IFLR Middle East International Law Firm of the Year 2012 (winning for the fifth time in six years).