Income Insurance Limited chairman Ronald Ong has recused himself from the board’s decision to appoint Morgan Stanley as financial adviser to the Allianz acquisition transaction.
The move was made to avoid a potential conflict of interest, as the chairman also serves as a senior executive at Morgan Stanley.
This development is Allianz’s announcement The company will acquire a 51% stake in Income Insurance for S$2.2 billion, significantly expanding its insurance portfolio.
The board, comprised primarily of independent directors, has established a steering committee to evaluate takeover proposals and ensure that the interests of all stakeholders, including policyholders and minority shareholders, are taken into account.
Allianz ensured a seamless transition for policyholders, preserving the terms and conditions of their existing insurance policies.
In addition, minority shareholders will be given the opportunity to tender their shares during the offer period, and NTUC Enterprise will only tender shares as necessary to enable Allianz to acquire at least a 51% stake.
An independent board committee will be appointed to appoint independent financial advisors, whose advice will be incorporated into the comprehensive document instructing shareholders whether to accept or reject the takeover proposal.
