AIA fails to get majority support for delisting at EGM

AIA Insurance Lanka PLC has failed to secure the required majority for the delisting move from shareholders. 

When the special resolution came up for vote at an EGM on 20 August, the required majority of 75% of shareholders in number, present and voting, didn’t materialise. 

The resolution was to offer Rs. 1,000 per share as part of voluntary delisting. AIA last traded on 20 July at Rs. 525.20. Net asset value per share as at 30 June was Rs. 542.46, down from Rs. 564.53 as at 31 December 2017.

However, the Company got the listing exemption from the Insurance Regulatory Commission of Sri Lanka in July.

AIA Holdings Lanka Ltd. holds 87.28%, and related party AIA Company Ltd. holds 9.88%.

The percentage of shares held by the public is a mere 2.84%.

However, AIA had 1,857 shareholders as at end-2017 of whom, 1,847 are resident. Of total shareholders, 1,683 hold shares between 1 and 1,000, and a further 164 hold shares between 1,001 and 10,000. Total individual shareholders amount to 1,796.

In the July announcement, AIA Insurance Lanka Director and Chief Officer Legal Chathuri Munaweera said: “The Regulation of Insurance Industry (Amendment) Act No. 23 of 2017 enables local subsidiary insurance companies of foreign companies listed on a stock exchange outside Sri Lanka to be exempted from their obligation to be listed – if the Insurance Regulatory Commission of Sri Lanka is satisfied that such subsidiary meets specified statutory criteria. As already disclosed to the CSE on 20 July, AIA Insurance Lanka’s application for exemption from being listed on a licensed stock exchange (based on the strength of its ultimate holding/parent company AIA Group Ltd., which is listed on the Hong Kong Stock Exchange) has been approved by the Insurance Regulatory Commission of Sri Lanka.” 

AIA Insurance Lanka CEO Pankaj Banerjee added: “As disclosed by AIA Group in its voluntary offer during 2013, it has been AIA Group’s ultimate objective, subject to legal and regulatory requirements and having obtained all necessary regulatory approvals, to delist AIA Insurance Lanka from the CSE.  This is consistent with the target operating model followed by AIA Group, where its insurance operating units are held as wholly owned subsidiaries wherever possible and permissible, with the parent company being the only publicly listed entity.” 

AIA Insurance Lanka Chairman William Lisle reiterated AIA Group’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 intent to delist is a reaffirmation of our commitment to the Sri Lankan market, which has very good growth potential. 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 and better lives.”