DAWN.COM

Today's Paper | November 23, 2024

Updated 16 Jul, 2022 09:16am

Finnish fund buys 17.6pc stake in TPL Insurance

KARACHI: TPL Corporation said on Friday a Finnish fund has successfully completed the transaction to acquire 17.59 per cent shareholding in TPL Insurance, a subsidiary of the Pakistani conglomerate.

Speaking to Dawn, TPL Insurance Ltd CEO Muhammad Aminuddin said the size of the transaction is $3 million, which amounts to Rs632.8 million at the current exchange rate.

Finnish Fund for Industrial Cooperation Ltd, a private firm incorporated in Finland, was originally going to invest roughly Rs540m in the Pakistani insurer through a special rights transaction. However, the investment size increased in the local currency because of the recent depreciation in the exchange rate.

“The investment will come through the issuance of new shares for which we’ve received approval from the regulator,” said the CEO.

Finnfund is a development financier and impact investor that buys stakes in “responsible and profitable” businesses in developing countries.

This is the second investment by an “impact investor” in TPL Insurance, which also raised last year an equity equalling 19.9pc of share capital from DEG, the private equity arm of the German government. The technology-driven business model of TPL Insurance supplemented by the Finnish fund’s global experience and knowledge will result in new product lines, a regulatory filing said.

According to the annual report for 2021, TPL Corporation and TPL Holdings held a collective stake of 64.38pc in TPL Insurance. After the transaction, the stake of the TPL Group in the insurer will reduce to 52pc, said Mr Aminuddin.

Published in Dawn, July 16th, 2022

Read Comments

At least 38 dead in gun attack on passenger vans in KP's Kurram District: police Next Story