The chairman of Income Insurance Limited Ronald Ong recused himself from the board’s decision to appoint Morgan Stanley as the financial advisor for the Allianz acquisition deal.
This move was made to avoid any potential conflict of interest, as the chairman also holds a senior executive position at Morgan Stanley.
This development follows Allianz’s announcement to acquire a 51% stake in Income Insurance for S$2.2 billion, marking a significant expansion in their insurance portfolio.
The board, predominantly composed of independent directors, established a steering committee to evaluate the acquisition offer, ensuring that the interests of all stakeholders, including policyholders and minority shareholders, are considered.
Allianz has assured a seamless transition for policyholders, maintaining the terms of existing policies.
Additionally, minority shareholders will have the opportunity to tender their shares during the offer period, with NTUC Enterprise only tendering its shares if necessary to ensure Allianz acquires at least 51% of the company.
An independent board committee will be set up to select an independent financial adviser, whose advice will be included in a composite document, guiding shareholders on whether to accept or reject the offer.
