Fintech
Income Chairman Rejects Morgan Stanley Selection in Allianz Deal
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Income Insurance Limited Chairman Ronald Ong abstained from the board’s decision to appoint Morgan Stanley as financial advisor to the Allianz acquisition deal.
This move was made to avoid any potential conflict of interest, as the chairman also holds a senior management position at Morgan Stanley.
This development follows that of Allianz announcement to acquire a 51% stake in Income Insurance for S$2.2 billion, marking a significant expansion of their insurance portfolio.
The board of directors, composed primarily of independent directors, has established a steering committee to evaluate the acquisition offer, ensuring that the interests of all interested parties, including policyholders and minority shareholders, are taken into account.
Allianz ensured a smooth transition for policyholders by maintaining the terms of existing policies.
In addition, minority shareholders will have the option to tender their shares during the offering period; NTUC Enterprise will only tender its shares if necessary to ensure that Allianz acquires at least 51% of the company.
An independent committee of the board of directors will be established to select an independent financial advisor, whose opinion will be included in a composite document, which will guide shareholders in deciding whether to accept or reject the offer.