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Allianz Pulls $1.7 Billion Bid to Buy Stake in Singapore Insurer

deals & business :: 2024-12-16 :: source - bloomberg


By Manuel Baigorri and Stephan Kahl

(Bloomberg) — Allianz SE (ALV.DE) withdrew an offer to buy a majority stake in Singapore’s Income Insurance Ltd. for about S$2.2 billion ($1.6 billion), following public backlash to the deal.

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Allianz decided to walk away from the deal after the Singaporean government said it shouldn’t proceed on its present terms and changes were made to the city-state’s Insurance Act, according to a statement Monday, which confirmed an earlier Bloomberg News report.

“We regret having to make this decision,” Renate Wagner, member of the Allianz board of management and responsible for the Asia-Pacific region, said in the statement. “We respect the Singapore Government’s decision.”

The German insurer originally announced a pre-conditional voluntary cash general offer for Income in July.

The Singapore government said in October that it wouldn’t be in the public interest to allow the deal to proceed. Allianz said at the time it would work with stakeholders to consider revisions to the transaction structure.

Income said in a separate statement Monday that it will continue to explore liquidity options for shareholders, adding that business continues as usual with no impact on policyholders.

“Disappointing as this withdrawal may be, it is not material to our investment thesis and we expect Allianz to continue to explore opportunities in Singapore and across Asia,” Keefe, Bruyette & Woods analyst William Hawkins wrote in a note. “Asia remains a region of strategic growth for Allianz.”

(Updates with comments from Income and KBW analyst.)

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