SINGAPORE: Exactly one month after the government blocked a proposed deal between Income Insurance and Allianz, the German insurer said it has had various discussions, but has not reached a final decision.
“These discussions are still ongoing and there is no guarantee that any transaction will take place,” the company said in an update posted on the Singapore Exchange on Thursday (Nov 14). “Further announcements will be made when appropriate.”
Allianz, Income, its parent company NTUC Enterprise and their advisers have “studied carefully” the implications of Culture, Community and Youth Minister Edwin Tong’s speech in parliament over the past month, Allianz said.
Income also posted a statement titled “monthly update on potential transaction with Allianz”.
It said it has had discussions on amendments to the proposed transaction structure, and has taken into account concerns raised in the ministerial statement and amendments to the Insurance Act, which were approved by parliament last month.
“Income Insurance will make further announcements if and when there are any material developments which warrant disclosure, in compliance with applicable laws and regulations,” the statement said.
“NOT IN THE PUBLIC INTEREST” FOR DEAL TO PROCEED
Allianz announced on Jul 17 that it was planning to buy a majority stake in Income Insurance.
Though the Singaporean company is a corporate entity, it previously functioned as a cooperative, and people were concerned about whether its original social mission would be forgotten if Allianz became the majority shareholder.
Former NTUC Income CEO Tan Suee Chieh spoke out against the proposed deal, along with his predecessor Tan Kin Lian and Ambassador-at-Large Tommy Koh.
Questions were also raised in parliament, but it was only in October that Mr Tong announced the deal would be stopped.
