Allianz Group, a leading European financial services company based in Munich, Germany, has reached an agreement with Banque Saudi Fransi (BSF) for a significant stake in the Saudi-listed Allianz Saudi Fransi Cooperative Insurance Company (AzSF).

This is the first time that a foreign strategic investor has been allowed to acquire shares in a company already listed on the Saudi Stock Exchange (Tadawul), said a statement from leading global law firm Baker McKenzie which acted for Allianz on the acquisition.

Under the agreement sealed last month, Allianz Group purchased an additional 18.5 per cent of the share capital of AzSF, a major provider of insurance products for corporate and individual clients in the kingdom, at a price of SR22 ($5.8) per share.

With this move, Allianz Group now holds 51 per cent of the share capital of AzSF and aims to increase its commitment to Saudi Arabia, while BSF, continues to hold 14 per cent of shares in and will remain a strategic partner of AzSF.

The Baker McKenzie team included Riyadh Corporate partners Karim Nassar and Mohammad Al Rasheed, along with associate Alia AlSalloum.

On the successful deal, Nassar said: "We are delighted to have been able to support Allianz Group in this landmark acquisition of shares in AzSF - the first time a foreign strategic investor has been allowed to acquire a stake in a company already listed on the Saudi Stock Exchange."

"This transaction underlines the commitment of the Saudi government to facilitating and promoting foreign investment, and all parties involved worked closely with the Saudi Arabian Monetary Authority, The Capital Market Authority and Tadawul to successfully close the deal," he added.-TradeArabia News Service