Asian Alliance’s claims-paying ability unaffected change in ownership – RAM

Thursday, 25 August 2011 00:00 - - {{hitsCtrl.values.hits}}

RAM Ratings Lanka said yesterday it views that the recent acquisition of Asian Alliance Insurance PLC (“AAI” or “the Company”) by the Softlogic Group will not have any rating implications on the Company’s BBB- claims-paying-ability rating at present. The outlook on the long-term rating remains stable. In the near term, there will not be any material change in AAI’s business and financial profiles as the benefit of potential operational and financial synergies with the new shareholder will only be realised over the medium to long term. Since 12 August 2011, Softlogic Holdings Limited (“SLH” or “the Group”) has effectively acquired 73.53% of AAI, with a direct interest of 22.53% and another 51% held via its subsidiary, Softlogic Capital Limited.

SLH is a well-diversified conglomerate with business interests in information and communication technology, retail, healthcare, automobiles, financial services and leisure. In particular, the Group owns and operates Sri Lanka’s largest chain of private hospitals (Asiri Hospitals PLC) and is the third-largest consumer electronics in the country.

In compliance with the Company Takeovers and Mergers Code 1995 (amended in 2003), the Group is obliged to undertake a general offer to acquire the remaining shares of the Company.