SINGAPORE - NTUC Enterprise (NE) and Income Insurance late on August 4 rebutted an open letter by former NTUC Income chief executive Tan Suee Chieh, in which he had criticised and objected to an offer by German insurer Allianz to buy a controlling stake in Income Insurance, and called on the Government to stop it. Referring to Mr Tan’s Aug...
Allianz on July 17 offered to buy a controlling stake of at least 51 per cent in Income, valuing a potential deal at $2.2 billion.SINGAPORE - NTUC Enterprise and Income Insurance late on August 4 rebutted an open letter by former NTUC Income chief executive Tan Suee Chieh, in which he had criticised and objected to an offer by German insurer Allianz to buy a controlling stake in Income Insurance, and called on the Government to stop it.
NE now holds a 72.8 per cent stake in Income while some 16,000 minority shareholders, including institutional investors, hold the remaining 27.2 per cent.In his letter on Aug 2, Mr Tan said that NE increased its stake in Income between 2015 and 2020, when the insurance provider was still a co-operative, with a series of capital injections totalling $630 million at a par value of $10 instead of at market value. This diluted the share of minority shareholders.
He added that NE’s commitment not to redeem its capital was fundamental to Income allowing it to obtain its shares at par value, which were seen to be undervalued, and raising its stake in Income from 30 per cent to 70 per cent. NE subsequently converted all its shares in Income to permanent shares in 2018 to support Income’s capital and solvency adequacy position.
Back then, an independent committee for Income had explored an outright sale, initial public offering or strategic partnership.
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