Friday Nov 15, 2024
Friday Nov 15, 2024
Monday, 27 June 2016 00:00 - - {{hitsCtrl.values.hits}}
Softlogic Holdings PLC and Fairfax Asia on Friday announced that they have signed an agreement to enter into a 10-year exclusive general insurance Distribution Agreement. The consideration payable under this agreement is Rs. 224 million.
As part of this transaction, Asian Alliance Insurance PLC announced that it has signed a Share Sale and Purchase Agreement with Fairfax Asia to sell all of the shares that it holds in Asian Alliance General Insurance Ltd.
Fairfax Asia may conduct the acquisition either directly or through another nominated member of the Fairfax Group and the purchase price for the said shares is Rs. 1.265 billion, which is a value equivalent to 1.7 times the Net Book Value of Asian Alliance General Insurance.
The closing of both of the aforesaid transactions are conditional on the completion of certain customary matters, including approvals by shareholders, regulatory approvals and other necessary third party approvals (as required).
The partnership between Softlogic and Fairfax Asia is expected to provide significant opportunities for both parties as the distribution agreement will permit its licensed insurance subsidiaries to cover hospital chains, retail outlets, shopping malls, automobile distribution, hospitality and electronic distribution of the Softlogic Group. The fast growing life business of Asian Alliance will be retained by the Softlogic Group and distribution of life products will continue across all of the Group’s distribution channels.
“We are extremely pleased to partner with Fairfax Asia, who have a very good track record in General Insurance that we are confident will translate into value addition at our Group channels. Their expertise will build on the great platform that we have established at Asian Alliance General Insurance for the benefit of all stakeholders,” said Softlogic Group Chairman Ashok Pathirage.
Fairfax Asia is a wholly-owned subsidiary of Fairfax Financial Holdings Ltd., a Canadian holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.
Asian Alliance Insurance PLC is a subsidiary of Softlogic Capital PLC and is part of the Softlogic Group, which is recognised as one of Sri Lanka’s most diversified and fastest-growing conglomerates, with interests in healthcare, retail, ICT, leisure, automobiles and financial services. Significant stakeholders in the company also include FMO and DEG, who are rated ‘AAA’ Development Financial Institutions from the Netherlands and Germany, respectively.
