Softlogic Group to buy 73.5% of Asian Alliance for Rs. 3.3 b

Wednesday, 13 July 2011 01:02 - - {{hitsCtrl.values.hits}}

Softlogic Group is to buy 73.5% stake in Asian Alliance for Rs. 3.3 billion from the latter’s controlling shareholder Asia Capital and related parties.

In an announcement Softlogic Holdings (SHL) said that the company and its subsidiary, Softlogic Capital have entered into a share purchase agreement with Asia Capital (ACAP) to acquire shares of Asian Alliance Insurance (AAIC).

Under the agreement, 53.1% held by ACAP and its subsidiaries, and 20.4% held by Fast Gain International (aggregating to 27.5 m shares, representing approximately 73.5% of the issued capital) will be acquired at Rs. 120 per share, for a total consideration of Rs. 3.3 b.

Consequent to the share purchase agreement executed by the shareholders of AAIC, 51.0% of issued shares of AAIC will be acquired by Softlogic Capital Limited at a consideration of Rs.2.3bn and the remaining 22.5% will be acquired by SHL for a consideration of Rs. 1 b (subject to approval).

The Daily FT on Friday exclusively reported that Softlogic Group is likely to enter the insurance sector as a strategic fit to its healthcare, financial services and retail businesses.