He had cast aspersions that are ‘not well-founded’ and ‘unfair’, say the two organisations.
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.
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.
NE had also offered not to redeem its shares in Income as a solution to having its capital contributions counted towards Income’s capital adequacy requirements and solvency position. Should minority shareholders accept Allianz’s offer at $40.58 per share if the deal is approved by MAS, they would be given priority to tender their shares ahead of NE. NE and Income added that Allianz’s offer price is between 3.3 times to 28 times their original Income investment.
As an IPO was not an attractive option due to market conditions, NE and Income held discussions with several financial and non-financial institutions for a strategic partnership. They said both foreign and local partners were explored and Allianz’s credentials were the strongest, while its interests were the most aligned with Income.
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