SINGAPORE: The proposed agreement between Income Insurance and German insurer Allianz has been halted by the Singaporean government.
Under the proposed deal, revealed on July 17, Allianz would have acquired a majority interest in Income. The announcement raised concerns about whether Income would continue its social goal, causing a public uproar.
The government stated that it is open to new arrangements provided the issues raised are properly resolved, even though it will not permit the proposed deal to move forward. When the agreement was first disclosed, several well-known people had voiced their opposition.
Culture, Community, and Youth Minister Edwin Tong informed parliament in a ministerial statement on Monday (October 14) that “the government has evaluated the proposed transaction and has determined that it would not be in the public interest for the transaction, in its current form, to proceed.”
He stated that the Ministry of Culture, Community, and Youth (MCCY) is not sure that the planned deal won’t have an impact on income or the ability of the cooperative movement to fulfil its social objective.
Mr. Tong stated, “We find it difficult to reconcile Income’s representations to MCCY during the corporatisation exercise that it was aiming to build up capital resources and enhance its financial strength with the proposed substantial capital reduction, soon after the transaction is completed.”
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