Crescent Star Insurance Limited cancelled the acquisition of PICIC Insurance Limited.
March 24, 2018
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Crescent Star Insurance Limited (KASE:CSIL) agreed to acquire PICIC Insurance Limited (KASE:PIL) on April 6, 2016. Under the terms of the deal, Crescent Star will issue 1 share for every 4 share of PICIC Insurance Limited. As of September 25, 2017, Crescent Star Insurance Limited announced that PICIC Insurance will issue additional 23.2 million shares
The deal is subject to necessary regulatory approvals including approvals from Securities & Exchange Commission of Pakistan, Competition Commission of Pakistan and other relevant authorities and conducting due-diligence of PICIC Insurance Limited. The transaction is cancelled on June 9, 2016. On June 10, 2016, the transaction is re-opened and will be continued to Crescent Star Insurance subject to all regulatory and corporate/legal approvals and completion process. The transaction is subject to necessary shareholders and regulatory approvals and sanction of agreement by high court. The board of directors of PICIC Insurance Limited and Crescent Star Insurance agreed to merge PICIC Insurance Limited with and into Crescent Star Insurance in their meeting. The Board of Crescent Star and PICIC Insurance Limited approved the scheme of amalgamation on June 28, 2016. The shareholders of Crescent Star unanimously approved the transaction on August 27, 2016. The shareholders of PICIC Insurance Limited unanimously approved the transaction on August 29, 2016. As on May 2, 2017, Board of Directors of PICIC Insurance Limited Ltd. put on hold the merger of PICIC Insurance Limited and Crescent Star Insurance Limited till revised decision. As on June 12, 2017, extra ordinary general meeting of the shareholders of PICIC Insurance Limited will be held on July 6, 2017. On July 6, as per the resolution of Board of Directors of PICIC Insurance Limited, the transaction is put on hold, however not terminated. Muniff Ziauddin & Co., Chartered Accountants acted as accountant to PICIC Insurance Limited.
Crescent Star Insurance Limited (KASE:CSIL) cancelled the acquisition of PICIC Insurance Limited (KASE:PIL) on March 25, 2018.
PICIC Insurance Limited is engaged in providing non-life insurance business. The Companyâs segments include Fire and property, Marine, aviation and transport, Motor, Accident and health, and Miscellaneous. Fire and property insurance compensate its customers for damage suffered to their properties or for the value of property lost. The Marine Insurance segment covers the loss or damage of vessels, cargo, terminals and any transport or property by which cargo is transferred, acquired, or held between the points of origin and final destination. The Motor insurance segment provides protection against losses incurred as a result of theft, traffic accidents and against third party liability. The Accident and health insurance segment contract mainly compensate hospitalization and outpatient medical coverage to the insured. Miscellaneous insurance segment includes engineering, terrorism, personal accident, worker compensation, travel, products of financial institutions, and crop insurance.
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