The shares in new entity being created with Orient Insurance will be part sold to public in an IPO
The Orient UNB Takaful, which is still under incorporation, will be 70 per cent held by the joint venture partners while 30 per cent of shares will sold to public in an initial public offering on Dubai Financial Market, according to a UNB statement on Abu Dhabi Securities Exchange, where its shares are traded.
It did not give details of planned IPO or how much cash the shareholders intended to raise.
The new entity has received initial approvals from UAEs insurance Authority, Securities and Commodities Authority and Dubais Economic Development Department, the statement added.
UNB, was at the centre of speculation along with Abu Dhabi Commercial Bank (ADCB) and Abu Dhabi Islamic Bank (ADIB) and the Al-Hilal Bank. News reports in mid-November suggested that the government plans to merge UNB with ADIB and combine the two Islamic lenders separately once it is completes the ongoing deal to merge National Bank of Abu Dhabi and Frist Gulf Bank.
UNB, ADCB and ADIB have all denied being engaged in mergers talks.
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