Janashakthi rights issue approved for AIA General acquisition

Janashakthi-Insurance

Oct 16, 2015 (LBO) – Sri Lanka’s Janashakthi Insurance received the formal go ahead from its shareholders to raise over 3.357 billion rupees by way of a rights issue of over 181.5 million rupees new ordinary shares  at its Extraordinary General Meeting (EGM) held on Friday to fund acquisition of AIA insurance, the company said in a statement.

Under this rights issue, Janashakthi will be issuing one (01) new ordinary share for every two (02) ordinary shares (1:2) held in the capital of the Company at a price of 18.50 rupees per share.

The Board of Directors of the company had passed a resolution in this regard on 19th August 2015.

In a bid to further bolster its position in the market, Janashakthi Insurance PLC., signed a purchase agreement with AIA Insurance Lanka PLC., to acquire 100 percent of the shares of AIA General Insurance Lanka Limited on 9th October 2015.

This is further accelerated through this acquisition which the company intends to close by the end of the month, subject to customary closing conditions including regulatory and transactional approvals.