The August 2011 acquisition of Asian Alliance Insurance (AAI) by Softlogic will not affect AAI's current "BBB-" long-term claims-paying-ability rating and stable outlook, according to RAM Rating Lanka.
According to a recent statement by the rating agency; "In the near term, there will not be any material change in AAI’s business and financial profiles as the benefit of potential operational and financial synergies with the new shareholder will only be realised over the medium to long term."
Headed by Ashok Pathirage, and comprising hospitals (Asiri), consumer electronics (Nokia, Samsung, Panasonic), automobiles (Ford and Daihatsu), apparel (Nike and Levi's) , furniture (Lifestyles), computers (Dell) and IT (Microsoft, Novell and Cisco), finance and leisure (Ceysands); Softlogic controls 72.53% of AAI shares, 22.53% directly and 51% through Softlogic Capital. This was reportedly at a cost of Rs. 3.3 billion. Also, according to media reports, Softlogic has since suggested that AAI was acquired because of AAI's inherent synergies with its own automobile and healthcare business.
Additionally noted by RAM; "In compliance with the Company Takeovers and Mergers Code 1995 (amended in 2003), the Group is obliged to undertake a general offer to acquire the remaining shares of the Company." |
E-mail
