ECONOMYNEXT - Sri Lanka's Janashakthi Insurance Plc had reached a deal to buy the general business of AIA Insurance Lanka Plc for for 3.2 billion rupees, officials said.
The firm is expecting wrap up the deal by the 31 of the month, Chairman W Ellawala said.
The firm has already announced a 3.3 billion rupee cash call on shareholders to fund the purchase.
Chairman W Ellawala said the acquisition would help boost its market share by 6.5 percent to 17.5 percent of the general insurance business in the country.
Janashakthi group is the third largest insurer in Sri Lanka measured by gross written premium, Chief Executive Jude Fernando said.
Ellawala said AIA business will be integrated with existing business and the firm had experience in acquiring business, from a previous purchase of state-run insurer.
"We have the expertise to handle mergers and acquisitions and we want to grow through that process," he said.
The sale will allow AIA to focus on life insurance according to the strategy of its parent, the firms said in a stock exchange filing.
Both AIA and Janashakthi are listed companies. US$=Rs141
The firm is expecting wrap up the deal by the 31 of the month, Chairman W Ellawala said.
The firm has already announced a 3.3 billion rupee cash call on shareholders to fund the purchase.
Chairman W Ellawala said the acquisition would help boost its market share by 6.5 percent to 17.5 percent of the general insurance business in the country.
Janashakthi group is the third largest insurer in Sri Lanka measured by gross written premium, Chief Executive Jude Fernando said.
Ellawala said AIA business will be integrated with existing business and the firm had experience in acquiring business, from a previous purchase of state-run insurer.
"We have the expertise to handle mergers and acquisitions and we want to grow through that process," he said.
The sale will allow AIA to focus on life insurance according to the strategy of its parent, the firms said in a stock exchange filing.
Both AIA and Janashakthi are listed companies. US$=Rs141
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