Take
over bid at Eagle Insurance
By Duruthu Edirimuni
UK-based Aviva, the world's sixth largest insurance group, and the
JKH-Carsons combine are competing in a takeover bid at Eagle Insurance,
brokers said.
John
Keells Holdings Ltd and Carson Cumberbatch (Carsons) said last week
they have made a joint offer to acquire the entire 87.27% stake
in Eagle owned by NDB Finance Lanka (Private) Ltd (NFL) and merge
Eagle with Union Assurance (UAL).
Brokers
said Aviva had also made an offer and are carrying out the due diligence
at present. They said NDB wants to sell Eagle to make a capital
gain, because it is a cash cow and at the same time reduce forays
by the Schaffter family who are after this stake at NDB. When Zurich
sold Eagle to NDB two years ago, JKH also made a bid for it. If
the merger between Eagle and UAL succeeds, it would be third largest
player in the life insurance market after Sri Lanka Insurance and
Ceylinco.
A JKH
statement said the group and Carsons are willing to acquire a minimum
stake of 15.3 million shares amounting to 51% of Eagle. Subsequent
to the purchase of the shares from NFL, JKH and Carsons will make
a mandatory offer to all the shareholders of Eagle as required by
the Takeovers and Mergers Code, the statement said.
|