AIA receives shareholder nod to delist from CSE

Tuesday, 2 April 2019 00:07 - - {{hitsCtrl.values.hits}}

AIA Insurance Lanka PLC yesterday announced that it will delist the company’s shares from the official list of the Colombo Stock Exchange (CSE) in compliance with applicable regulations and procedures, while at the same time reaffirming its commitment to the Sri Lankan market.

The proposal to delist was approved by the requisite shareholder majority at the Extraordinary General Meeting held on 27 March.

AIA Insurance Lanka Chairman William Lisle

The delisting of the company’s shares is based on a revised and final offer made by AIA Company Limited of Hong Kong of Rs. 2,500 per share. AIA Company Limited Hong Kong is a part of the AIA Group of companies, which includes AIA Insurance Lanka.

As authorised by the EGM, AIA Insurance Lanka will be making a formal application to the Securities and Exchange Commission of Sri Lanka, for their approval to delist the company’s shares.

The company will be communicating with shareholders and dispatching the Offer Document to the shareholders on the offer made by AIA Company, upon such approval of the SEC having been received.

The decision to delist from the CSE is based on AIA Group’s preferred target operating model for its business units of operating as wholly-owned subsidiaries, with the parent company being the only publicly listed entity. Since its entry into Sri Lanka, AIA Group has disclosed its intent to delist AIA Insurance Lanka from the CSE.

As part of this process, AIA Insurance Lanka secured, in accordance with the amendments made to Sri Lanka’s Insurance Law in 2017, an exemption, as approved by the Insurance Regulatory Commission of Sri Lanka, from the requirement to be listed on a Stock Exchange, based on the listing of its ultimate parent entity AIA Group, on the Stock Exchange of Hong Kong Ltd.

AIA Insurance Lanka Chairman William Lisle reiterated AIA’s commitment to Sri Lanka, saying: “AIA is fully committed to continued growth and investment in Sri Lanka for the benefit of our customers, as well as for the local community and economy. Our delisting from the CSE will not impact AIA’s operations in Sri Lanka. We have invested heavily to provide our customers with leading products and services and we will continue to help many more people here live Healthier, Longer, Better Lives.”

AIA Insurance Lanka’s licence to carry out life insurance business as granted by the IRCSL is not and will not be affected by the delisting of the company and the business will continue to be supervised by the IRCSL. Policyholder liabilities will not be affected and AIA Insurance Lanka will continue to honour its obligations to its customers.