As authorised by the EGM, AIA Insurance Lanka made a formal application to the Securities and Exchange Commission of Sri Lanka (the “SEC”), for their approval to delist the Company’s shares.
Further to the Company’s announcement in this regard on May 10, 2019, the Exit Offer Document setting out the Exit Offer made by AIA Company Limited (‘offeror’) of Hong Kong, to the rest of the Company’s Shareholders for their shares in the Company at the Exit Offer Price of Sri Lanka Rs 2500 per issue and fully paid ordinary share has been dispatched to the Company’s shareholders.
The Exit Offer will be open for a period of 20 market days c from May 24, 2019 (‘opening date’) to 4.30 pm on Friday, June 21 2019 (‘closing date’). Payment will be dispatched by the Offeror to shareholders who accept the exit offer, subject to the terms and conditions of the exit officer as set out in the Exit Offer Document.
Pankaj Banerjee, CEO of AIA Insurance Lanka noted, “Our shareholders have shown a great interest in taking up the very generous exit offer of Rs 2,500 per share made by the Offeror and we thank them for their support and patience so far as the Offeror and AIA Insurance coordinate the rest of the procedures”.
Chathuri Munaweera Director, Chief Officer Legal commenting on the Offer Acceptance process said, “In order to facilitate a faster acceptance and fund transfer process, the Offeror has provided for two staggered payment intervals where (although the Offer is open from May 24 to June 21) those shareholders who hand over valid forms of offer acceptance by June 7, 2019 will receive their monies for the shares sold, within 15 market days from June 7 without having to wait for the formal offer closure on June 21, 2019”.
The decision to de-list 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 secured, in accordance with the amendments made 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 ultimate 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 is not and 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.
0 comments: