Feb 26, 2013 (LBO) – AIA Insurance said it is making an offer to buy out all minority shareholders of its Sri Lanka unit, ahead of plans to go private and made cash calls to boost capital. AIA said it was the operation model of the group to hold operating units as wholly owned units and only keepo the ultimate parent company, AIA group Ltd as a listed entity.
AIA offered to buy out minority shareholders of AIA Insurance Lanka Plc, formerly AVIVA NDB Insurance Plc at 349 rupees per share and pay more if most of the remaining shareholders too take up the offer.
If stockholders more than 90 percent of the remaining 7.7 of voting minority stock took up the offer, AIA said it will pay 400 rupees a share, the firm said in a stock exchange filing.
AIA said it was making the offer because it intended to inject capital to the firm to support its business plan which may dilute shareholders who did not take up the offer and also cut dividend payouts in the near term.
“It is AIA’s ultimate objective, subject to legal and regulatory requirements¦or applicable in the future and having obtained all necessary regulatory approvals and clearances to proceed to a delisting of AIA Insuran