Janashakthi shareholders approve Rs. 3.3 b Rights Issue to fund AIA General buy

Monday, 19 October 2015 00:00 - - {{hitsCtrl.values.hits}}

In a bid to further bolster its position in the market, Janashakthi Insurance Plc signed a share purchase agreement with AIA Insurance Lanka Plc to acquire 100% of the shares of AIA General Insurance Lanka Ltd. on 9 October.

Janashakthi’s entrepreneurial spirit, innovative products and steadfast growth momentum have helped the company establish itself as a formidable force in Sri Lanka’s insurance sector. This is further accelerated through this acquisition which the company intends to close by the end of the month, subject to customary closing conditions including regulatory and transactional approvals.

Janashakthi Insurance Plc received the formal go-ahead from its shareholders to raise over Rs. 3.357 billion by way of a Rights Issue of over 181.5 million new ordinary shares at its Extraordinary General Meeting (EGM) held on 16 October.

Under this rights issue, Janashakthi will be issuing one new ordinary share for every two ordinary shares (1:2) held in the capital of the company at a price of Rs. 18.50 per share. The Board of Directors of the company had passed a resolution in this regard on 19 August 2015.