Tune Ins shares rise on proposed Indonesian acquisition

KUALA LUMPUR: Tune Ins Holdings Bhd shares traded in positive zone in the afternoon session after the company proposed to acquire a 50 per cent stake plus one share in Indonesian insurance provider, PT Asuransi Staco Mandiri (ASM) for 82.86 billion rupiah (RM22.79 million).

As at 3.40 pm, the company gained one sen to RM1.81 with 448,800 shares transacted. 

In an announcement to Bursa Malaysia yesterday, Tune Ins said it had executed a conditional binding offer letter to acquire 38,235 ordinary shares of 500,000 rupiah each or 31.82 per cent of ASM's issued and paid-up share capital from the selling shareholders for 26.76 billion rupiah. 

It will also subscribe the entire 43,707 newly issued shares in ASM for 30.59 billion rupiah or 26.67 per cent of ASM's enlarged share capital. 

To facilitate the acquisition process, it had entered into a cooperation agreement with PT Cahaya Putratama Abadi (CPA) for the latter to assist Tune Ins to become the holding company of ASM.

The cooperation agreement will also facilitate the acquisition process of ASM and for CPA to provide further assistance and business development services for the expansion of Tune Ins's insurance business in Indonesia for 25.5 billion rupiah. 

Tune Ins said the proposed acquisition would be funded through internally generated funds.-Bernama