Janashakthi Shareholders Approve Rights Issue to Fund Acquisition of AIA General
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 Limited on 9th October 2015.
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 16th October 2015.
Under this rights issue, Janashakthi will be issuing one (01) new ordinary share for every two (02) 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 19th August 2015.
