AIA extends exit offer closing date to July 5
In a communication issued to the Colombo Stock Exchange on June 21, 2019, AIA Insurance Lanka PLC has announced to its shareholders that the closing date of the Exit Offer made by AIA Company Limited of Hong Kong to the rest of the company’s shareholders has been extended from June 21, 2019 until Friday, July 5, 2019 to accommodate shareholder requests for an extension.
AIA Insurance Lanka announced in March 2019 that it will delist the company’s shares from the official list of the Colombo Stock Exchange (CSE) in compliance with applicable regulations and procedures while at the same time reaffirming its commitment to the Sri Lankan market.
The proposal to delist was approved by the requisite shareholder majority at the Extraordinary General Meeting held in March 2019 and by the Securities and Exchange Commission of Sri Lanka in May 2019.
The Exit Offer for delisting of the company’s shares based on a final offer made by AIA Company Limited of Hong Kong at Rs.2,500 per share commenced on May 24, 2019 with the original closure date of June 21, 2019, which is now extended to July 5, 2019, giving many shareholders much requested time to complete administrative processes involved in accepting the Exit Offer.
AIA Insurance Director and Chief Officer Legal Chathuri Munaweera assuring that the extension does not delay the payment procedures, explained that in respect of valid “Forms of Acceptance and Transfer”, which are received by June 7, 2019, payments are already being dispatched to the entitled shareholders, whilst the payments for the valid “Forms of Acceptance and Transfer”, which were received during the period from June 10 to 21, 2019, will be dispatched on or before the expiry of 15 market days, from June 21, 2019.
For shareholders who hand over “valid Forms of Acceptance and Transfer” by or before 4:30 p.m. on July 5, 2019, the payment will be made on or before the expiry of 15 market days from July 5, 2019.
AIA Company Limited Hong Kong is part of the AIA Group of Companies, which includes AIA Insurance Lanka (AIA Group). The decision to delist from the CSE is based on AIA Group’s preferred target operating model for its business units of operating as wholly owned subsidiaries, with the parent company being the only publicly listed entity.
Since its entry into Sri Lanka, AIA Group has disclosed its intent to delist AIA Insurance Lanka from the CSE. As part of this process, AIA Insurance Lanka secured, in accordance with the amendments made to Sri Lanka’s Insurance Law in 2017, an exemption, as approved by the Insurance Regulatory Commission of Sri Lanka (IRCSL), from the requirement to be listed on a Stock Exchange, based on the listing of its ultimate parent entity AIA Group Limited, on Stock Exchange of Hong Kong Ltd.
AIA Insurance Lanka’s licence to carry out life insurance business as granted by the IRCSL is not and will not be affected by the delisting of the company and the business will continue to be supervised by the IRCSL. Policyholder liabilities will not be affected and AIA Insurance Lanka will continue to honour its obligations to its customers.