Public listed company, AIA Insurance Lanka PLC will delist the Company’s shares from the list of the Colombo Stock Exchange (CSE) in compliance with applicable regulations and procedures.
The proposal to delist was approved by the requisite shareholder majority at the Extraordinary General Meeting (EGM) on March 27. The delisting of the company’s shares is based on a revised and final offer by AIA Company Limited of Hong Kong of Rs. 2,500 per share. AIA Company Limited Hong Kong is a part of the AIA Group of companies, which includes AIA Insurance Lanka (AIA Group).
AIA Insurance Lanka will make a formal application to the Securities and Exchange Commission of Sri Lanka (SEC), to delist the Company’s shares. The Company will communicate with shareholders and dispatch the Offer Document to the Shareholders on the offer by AIA Company Limited, following approval of the SEC.
The decision to delist 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 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 need 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.
AIA Insurance Lanka’s licence to carry out life insurance business as granted by the IRCSL will not be affected by the delisting of the company and the business will continue to be supervised by the IRCSL. Policyholder liabilities will not be affected and AIA Insurance Lanka will continue to honour its obligations to its customers, a company spokesman said.