Sri Lanka Softlogic to buy insurer

Thu, 23 May 2013 15:50:03

12 Jul, 2011 09:33:39

July 12, 2011 (LBO) - Sri Lanka's Softlogic Holdings group is buying a 73.5 percent stake in Asian Alliance Insurance, a listed insurer for 3,308 million rupees, the company said in a stock exchange filing.

Softlogic Holding group will buy 53.16 percent of Asian Alliance held by Asia Capital PLC and its subsidiaries and 20.36 percent held by another shareholder, Fast Gain International.

Softlogic Capital, a unit of Softlogic Holdings will buy 51 percent of Asian Alliance for 2,295 million rupees.

Softlogic Holdings will buy 22.53 percent of the insurer for 1,013 million rupees.

Asian Alliance has general and life businesses. Sri Lankan insurers are now making losses on most of their general business.

Softlogic Holding's stock issued at 29 rupees at an IPO fell as low as 16.20 rupees before picking up to around 21.50 rupees in early trade.

Udpate

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5. Podda Jul 12

@Narada. Well said. Its high time to setup a retail investor union to take action (legal or otherwise) against these looters.

Share Market should be a proving ground rather than a looters paradise.

4. Narada Jul 12

This was dodgy from the beginning... overpriced IPO, delayed first trading day. I guess all this meets CSE's 'standards'. I'm calling for a class action law suite against SHL, CSE, JKSB.

3. shehan Jul 12

Now how wil this acqusition be funded by softlogic? the IPO was to settle loans. does this mean a rights issue will be coming shortly? The timing of the transaction is utterly poor. And the opening trade today is a disgrace and future indications where IPO flops are in the way.

2. Small investor Jul 12

Did anyone see the share price? Looks like "someone" put the carrot out in the morning before offloading the Private Equity share early in the morning! :)

1. Podda Jul 12

SoftLogic you'd better perform after selling shares to retailers at 29/=. And pray for NOT to fail.