• EKH to sell 63.39% stake in Delta Insurance to Morocco’s Wafa Assurance
• Deal values Delta at EGP 5 billion; subject to regulatory approvals
• Acquisition expands Wafa’s reach in Egypt’s underpenetrated insurance market
  

Egyptian Kuwaiti Holding (EKH) announced Thursday it has approved the sale of its entire 63.39% stake in Egypt’s Delta Insurance Company to Morocco’s Wafa Assurance group.

The decision was made by the board of the investment holding company, which is controlled by prominent Egyptian and Kuwaiti businessmen, according to a notice filed with the Cairo Stock Exchange regulator.

The transaction will be executed at the price proposed in the mandatory tender offer (MTO) submitted by the Moroccan insurer, which is 40 Egyptian pounds ($0.84) per share.

Wafa Assurance had initially announced its launch of an MTO for a majority stake in Delta Insurance on June 16. The offer, filed with Egypt’s Financial Regulatory Authority (FRA), sought to acquire at least 51% of the Egyptian Exchange-listed insurer at 40 pounds per share, valuing the company at approximately 5 billion pounds ($105.3 million).

The MTO remains subject to regulatory approval from competent authorities in both Egypt and Morocco. Delta Insurance Company, founded in September 1980 and listed on the Egyptian Exchange since July 1996, has been majority-owned by Egyptian Kuwaiti Holding since 2018.

Wafa Assurance, which was reportedly competing with France’s Axa for the acquisition, already operates in the Egyptian life insurance market through its subsidiary, Wafa Life Insurance Egypt, established in 2021. The acquisition is expected to allow the Moroccan firm to expand into the property and casualty and health segments within the promising Egyptian market.

With a population exceeding 120 million and an insurance penetration rate below 1%, Egypt represents a significant growth opportunity for major foreign insurance players.

Walid Kéfi