SINGAPORE – It was to be a marriage of convenience but those involved are now faced with much inconvenience.
The fraying of the proposed union between German insurer Allianz and Singapore’s Income Insurance has left people close to the matter shell shocked and red-faced.
Sources told The Straits Times that parties who would normally have been kept abreast of developments in the proposed deal were not told in advance about the Government’s move on October 14 to halt the planned marriage.
It comes after Allianz on July 17 made an offer to buy a controlling stake of at least 51 per cent in Income in a deal that was valued at $2.2 billion. The offer was subject to regulatory approval.
In the end, the groom in question was left at the altar, the bride was in tears and the parents stunned.
ST was told that Allianz and NTUC Enterprise, which is a major shareholder of Income, were informed of the rejection shortly before the Government’s decision was made public in parliament.
Key people close to the proposed deal said the decision was kept to a small group and that they were not privy to the decision, which has been described as “a total shock”.
The move, announced in Parliament on Oct 14 by Mr Edwin Tong, who is Minister for Culture, Community and Youth (MCCY), and also Second Minister for Law, came on the back of new information disclosed after an Aug 6 parliament sitting.
Allianz, in its business plan submission to the Monetary Authority of Singapore (MAS), said it could return around $1.85 billion in cash to its shareholders. This would be within the first three years after the transaction wraps up.
It is worth noting that the business plan submission is separate from the