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Govt supports 'strong partner' for Income, remains open to any new deal from Allianz or others: PM Wong
He said there were no concerns arising from Allianz acquiring a majority stake, but they were concerned about the "structure and terms" of the deal.
October 14, 2024, 04:58 PM
Prime Minister Lawrence Wong said that while the government supports having a strong partner for Income, they were concerned over the structure and terms of the Income-Allianz deal.
"Though this transaction will not proceed, we remain open to a new deal that Income may pursue with Allianz or other partners, so long as our concerns are fully addressed," said PM Wong in a Facebook post.
Minister for Culture, Community and Youth Edwin Tong had previously announced the government's decision to call off the Income-Allianz deal through a ministerial statement in parliament on Oct. 14.
Came across more information
"In the course of reviewing NTUC Enterprise's proposed sale of Income shares to Allianz, we came across additional information that gave us cause for concern," PM Wong penned.
"The government has therefore decided not to approve the transaction."
Tong said in his speech that the new information included the intention to "optimise Income's insurance business" after the acquisition and also the projection that Income could return S$1.85 billion in cash to its shareholders within three years of the deal.
"We have tabled an amendment to the Insurance Act in Parliament today to allow MAS to withhold approval of the sale on the grounds of public interest when it involves a current or former cooperative insurer," PM Wong said.
Government's stance on Allianz is unchanged
"To be clear," PM Wong went on, "The government supports having a strong partner for Income so as to strengthen its capital base and market position."
He added that there are "no concerns" over the German insurer's standing or suitability to gain a majority stake in Income.
PM Wong clarified that the government's concerns pertained specifically to the "structure and terms" of this transaction, considering that Income had assured MCCY in 2022 that corporatising would not compromise its social mission.
While this particular transaction has been halted, the government remains open to a new deal that Income may pursue with Allianz or other partners — "So long as our concerns are fully addressed," PM Wong said.
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Top images via Lawrence Wong/Facebook, Allianz and Google Maps
