KSE notice: Greenoaks Global Holdings makes public offer

Wants to purchase TPL Direct Insurance’s shares up to 7.5m.

KARACHI: Greenoaks Global Holdings, an affiliate of Greenoaks Global Insurance, made a public offer on Monday to purchase ordinary shares of TPL Direct Insurance, a non-life insurance company, at an offer price of Rs30 per share.

The public offer will remain open for 60 days, according to a notice sent to the members of the Karachi Stock Exchange (KSE). Greenoaks Global Holdings aims to acquire through the public offer up to 7.5 million shares, representing 16.3% of the total issued share capital of the company.



Before making the public offer, the acquirer had entered into a share purchase agreement with TPL Trakker, which is the holding company of TPL Direct Insurance, for the purchase of 15.1 million ordinary shares representing approximately 33% of the total issued share capital of TPL Direct Insurance at the offer price of Rs30 per share,.

TPL Direct Insurance is a profitable entity despite its small size within the non-life insurance industry. For the six-month period ending June 30, TPL Direct Insurance posted a net profit of Rs36.4 million. It was up 9.6% from Rs33.2 million recorded in the corresponding six-month period of the preceding fiscal year.

Its premiums have been increasing rapidly, clocking up at Rs606.3 million for the six-month period. Their share in the total premium written industry-wide was 2.27% for the January-June period.

Its share price closed at Rs27.15 at the end of the trading session on Monday. It has increased 112% since the beginning of the fiscal year.

A number of foreign companies have shown interest in entering Pakistan’s insurance industry in recent months. They include the world’s leading insurance brokers Marsh and Lockton. Greenoaks Global Holdings is part of Greenoaks Global Insurance, which was formerly known as Rosewood Insurance Group AG.

Besides acquiring a stake in TPL Direct Insurance, sources say the Swiss group also wants to buy a significant shareholding in two other insurance companies.

Established in 2005, TPL Direct Insurance promises to lodge claims in 60 seconds and process them in 45 minutes. It is Pakistan’s first and only direct insurance company, which means the insurer is directly responsible to the insured without involving a reinsurer.

Published in The Express Tribune, November 11^th, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.