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CHAMPION OF THE DAY
Japanese firm buys stakes in MedGulf
Deal worth $200 million
Lebanese-owned regional insurer MedGulf (Mediterranean and Gulf Cooperative Insurance and Reinsurance Company) is selling a quarter of its stakes to Japan's Orix Corp in a deal worth a little over $200 million. The deal's conclusion is expected by end-June pending regulatory approval.
After the deal, SLH Holdings (which holds the shares of Medgulf’s major shareholder LFZ Holding) will own 60.2 percent of the Bahrain-based holding company, Orix will own 25.7 percent, and the World Bank’s private arm, the International Finance Corporation (IFC) will own 14.1 percent. Orix will acquire two seats on Medgulf's board of directors and another on the board of a Medgulf subsidiary.
Medgulf runs insurance businesses in several Arab markets, including Lebanon, Saudi Arabia, and Jordan.
According to the IFC, the strategy is to expand Medgulf into Egypt, Iraq, and Turkey, where many people lack insurance coverage, mainly in the health and commercial lines.
MedGulf’s Chairman is Lutfi Zein. He is the founder and Chairman of the family-owned LFZ Holding, which bought 49 percent of Medgulf’s stocks from Saudi Oger in 2011.
Reported by Hanadi Chami
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Jun 21, 2013
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