Acquiring 81.97 percent ownership interest of ALIC: IGI Insurance Board gives approval to initiate talks

IGI Insurance Limited (KSE: IGIIL) announced that its Board gave approval for commencement of negotiations for acquiring 81.97 percent ownership interest of American Life Insurance Company (Pakistan) Limited. Thereafter, due diligence exercise shall commence in this respect.
The consummation of the proposed acquisition, however, is subject to execution of Share Purchase Agreement and completion of tender offer pursuant to the Listed Companies (Substantial Acquisition of Voting Shares and Take-overs) Ordinance 2002. In addition, it is also subject to the receipt of all relevant regulatory consents, including those from the Competition Commission of Pakistan and the Securities and Exchange Commission of Pakistan.
In September 2004, IGI acquired the general insurance portfolio of the Royal & Sun Alliance Insurance plc (R&SA), now known as RSA. IGI has retained a long-term IFS (Insurer Financial Strength) rating of "AA" from PACRA (Pakistan Credit Rating Agency Limited) for twelve consecutive years and is one of the leading companies in the non-life sector. The Board of Directors of IGI believes that after this acquisition IGI will have the opportunity to expand its life operations in the country and provide further benefits to its stakeholders.-PR