Sri Lanka Softlogic to buy insurer

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.