Parent to buy Rs.3.2bn worth of land, shares from Janashakthi General

Janashakthi Insurance PLC will be purchasing fixed and portfolio investments totalling Rs.3.7 billion held by its subsidiary Janashakthi General Insurance Ltd, which is being acquired by global insurance leader Allianz S.E. for Rs.16.4 billion.

In a circular to Janashakthi shareholders, the firm’s board of directors said that it would be acquiring 16 properties belonging to Janashakthi General, spread across the island, totalling 573.19 perches, for Rs.2 billion.

Further, Rs.1.7 billion worth of shares in Nation’s Trust Bank PLC, CBD Finance PLC and Serendib Land PLC would also be purchased.

This was outlined in the circular calling for an Extraordinary General Meeting to pass the resolutions related to the sale of Janashakthi General Insurance and to amend the parent company’s articles of association to allow a share buyback after the sale of the subsidiary.

The agreement for the sale of Janashakthi General Insurance to Allianz S.E. was signed last week, subject to shareholder and regulatory approvals.