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Economy in brief: Dai-ichi purchases Panin Life for Rp3.3t
JAKARTA: Japanese Dai-ichi Life Insurance Company Ltd says it has sealed the deal on the purchase of a 40 percent stake in Indonesiaâs PT Panin Life for Rp 3
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AKARTA: Japanese Dai-ichi Life Insurance Company Ltd says it has sealed the deal on the purchase of a 40 percent stake in Indonesia's PT Panin Life for Rp 3.3 trillion (US$337 million).
'The investment in Panin Life is based on the company's core growth strategy, which is to enhance overseas life insurance operations in the Asia-Pacific region following its existing businesses in Vietnam, India, Thailand and Australia. The company will seek to further enhance its overseas life insurance business going forward,' Dai-ichi said in a written statement on Tuesday.
Under the agreement, Dai-ichi will purchase Panin Life by directly and indirectly subscribing to 5 percent of the latter's new shares issued.
Meanwhile, Panin Life's existing shareholder, PT Panin Internasional, will purchase the remaining 35 percent of the insurance company's new shares. Panin Internasional, which is 63.16 percent owned by Jakarta-listed PT Panin Financial, currently holds a 100 percent stake in Panin Life. Its shareholding will be reduced to 95 percent after Panin Life's new shares issuance.
To fund the purchase of Panin Life's new shares, Panin Internasional will also issue new shares equivalent to 36.84 percent of its enlarged capital, which will be purchased by Dai-ichi.
