AIA insurance plans de-listing from Colombo Stock Exchange | Sunday Observer

AIA insurance plans de-listing from Colombo Stock Exchange

AIA Insurance Lanka PLC will delist the company’s shares from the list of the Colombo Stock Exchange (CSE), subject to shareholder and regulatory approval. An Extraordinary General Meeting (EGM) on this matter will be held on March 27. The proposed delisting of the Company’s shares will be based on a revised and final offer made by AIA Company Limited of Hong Kong of Rs. 2,500 per share.

The decision to delist from the CSE is based on AIA Group’s preferred target operating model for its business units of operating as wholly owned subsidiaries, with the parent Company being the only publicly listed entity.

Since its entry into Sri Lanka, AIA Group has disclosed its intent to delist AIA Insurance Lanka from the CSE. As part of this process, AIA Insurance Lanka has secured, in accordance with the amendments to Sri Lanka’s Insurance Law in 2017, an exemption, as approved by the Insurance Regulatory Commission of Sri Lanka (IRCSL), from the requirement to be listed on a Stock Exchange, based on the listing of its parent entity AIA Group Limited, on the Stock Exchange of Hong Kong Ltd (HKSE).

The delisting resolution proposed at the EGM held in August 2018 could not be adopted since the majority by a head count via a vote on a show of hands, could not be obtained due to the views of certain shareholders on the method of valuation that had been used for determining the previous offer price of Rs. 1,000 for the Company’s shares.

Independent expert opinions obtained pre and post the EGM of August 2018 on the fairness of the previous offer price of Rs. 1,000 per share which includes factoring the Embedded Value per share of the Company, have confirmed the previous offer price of Rs. 1,000 per share as being fair and reasonable.

The Company, in line with its commitment to the Sri Lankan market, has negotiated an ex-gratia increase of Rs 1,500 over the last offer price of Rs. 1,000 per share, resulting in the revised offer price of Rs. 2,500 per share.

AIA Insurance Lanka and AIA Group has said that this revised offer of Rs. 2,500 per share is final. In the event that the proposed delisting resolution is not carried through, AIA will explore other options under the law in restructuring its Sri Lankan operations to maintain its commitment to the continued growth of its operations and investments for the benefit of the customers, the local community and the economy.

AIA Insurance Lanka Chairman William Lisle said, “AIA is committed to continued growth and investment in Sri Lanka. Our intent to delist will not impact AIA’s operations in Sri Lanka. We have invested heavily to provide our customers with leading products and services and will continue to help many more people here live Healthier, Longer, Better Lives.”

AIA Insurance Lanka’s licence to carry out life insurance business as granted by the IRCSL will not be affected by the proposed delisting of the Company. Policyholder liabilities will not be affected and AIA Insurance Lanka will continue to honour its obligations as the insurer for all customers for their risks underwritten per policy terms. 

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