Publicly-listed property and fleet management company VB Holdings is in talks with an insurance firm as it moves to diversify its investments into the insurance sector.
The company announced this merger and acquisition activity yesterday on the South Pacific Stock Exchange (SPX).
It said it was in discussion with SUN Insurance Company Ltd –it described it a well-regarded insurance company – on the proposed acquisition of a stake in the company and board representation.
VB Holdings Ltd managing director and CEO Nitish Niranjan said the company would not seek to obtain debt or equity financing.
“… It has sufficient cash reserves to fund this acquisition,” Mr Niranjan said.
The value of the acquisition was not revealed.
“In accordance with SPX’s continuous disclosure rules and policy, VBH is required to inform the market of any disposal or acquisitions of 5 per cent or more of its market capitalisation or assets, considered as significant and material to make an adequate and prompt disclosure of material events.
“SUN Insurance operated as a profitable company for the past 30 years. The company has a strong track record of providing insurance services to the community.
“In the last five years, SUN Insurance has updated its product offerings to meet the market demand for more comprehensive insurance coverage by introducing Limited Cyclone Coverage, New Vehicle Replacement and Limited Perils Coverage insurance, and establishing a Micro-insurance Product in conjunction with the United Nations Capital Development Fund (UNCDF).”
Mr Niranjan said the investment VB Holdings sought in the insurance company could represent above 20 per cent of its total asset value.
VB Holdings Ltd was listed on the SPX in 2001.
