AIA Insurance Lanka PLC yesterday said it will delist the company’s shares from the official list of the Colombo Stock Exchange (CSE) in compliance with the 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 (EGM) held on March 27, 2019.
The delisting of the company’s shares is based on a revised and final offer of Rs.2,500 per share, made by AIA Company Limited of Hong Kong. AIA Company Limited Hong Kong is part of AIA Group of Companies, which includes AIA Insurance Lanka (AIA Group).
As authorised by the EGM, AIA Insurance Lanka will be making a formal application to the Securities and Exchange Commission of Sri Lanka (SEC), for its approval to delist the company’s shares.
The company said it would be communicating with the shareholders and dispatching the offer document to the shareholders on the offer made by AIA Company Limited, upon such approval of the SEC having been received.
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, from the requirement to be listed on a stock exchange, based on the listing of its ultimate parent entity AIA Group Limited, on The Stock Exchange of Hong Kong Ltd.
“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,” AIA Insurance Lanka Chairman William Lisle said reiterating AIA’s commitment to Sri Lanka.
“Our delisting from the CSE will not impact AIA’s operations in Sri Lanka. 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, better lives,” he added.