NTUC Enterprise says it remains “fully committed” to supporting Income Insurance in a clarification statement issued on July 25.
In a separate statement issued on the same day, Income Insurance adds that NTUC Enterprise will remain a substantial shareholder after the close of the offer. Its on-going commitments, including social ones, will continue as well.
The clarification statement comes after former diplomat Tommy Koh expressed his concerns that the sale of Income was not a good idea.
“[Income] was founded to serve a social purpose and a social need,” said Koh in a Facebook post dated July 23.
On July 17, Allianz announced that it intends to offer $40.58 per share for at least 51% of the shares in Income Insurance. The offer price represents a 37.3% premium over Income’s net asset value (NAV) of $29.55 per share.
Referring to the pre-conditional offer announcement, Income Insurance notes that Allianz intends for it to continue participating in national insurance programmes and investing in communities in Singapore among others.
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“Income Insurance will continue to provide affordable and accessible insurance options to the underserved and lower-income customers, through products such as the LUV and SilverCare policies,” says Lim Boon Heng, chairman of NTUC Enterprise.
“Secondly, Income Insurance will continue to participate in national insurance programmes in partnership with the CPF Board. Thirdly, Income insurance will also continue to price its products very competitively. NTUC Enterprise will also continue as an active shareholder of Income Insurance to keep it to its purpose and deliver social commitments to its policyholders,” he adds.
NTUC Enterprise also notes that minority shareholders can choose to tender all, any, or none of their shares when the offer is launched. The closing of the offer is expected to be in the fourth quarter of 2024 or in the first quarter of 2025.
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Follow The Edge Singapore’s coverage of Allianz and Income Insurance:
- May 23: Singapore’s Income Insurance considering partnerships or stake sale
- June 14: Income Insurance and Allianz hold 'transaction' talks, latest possible Singapore insurance M&A
- July 17: Allianz offers $40.58 per Income share, representing premium of 37.3% over NAV
- July 30: NTUC Enterprise issues further clarification statement, stresses its commitment to Income Insurance
- Aug 3: Income Insurance: open letter, global backdrop, redeemable and irredeemable shares
- Aug 4: NTUC Enterprise explains the difference between redeemable and irredeemable shares to former CEO
- Aug 5: Former NTUC Income and NTUC Enterprise CEO rebuts NTUC Enterprise’s points
- Aug 6: Income-Allianz deal saga: From a minority shareholder’s perspective
