A German company Deutsche Investitions – und Entwicklungsgesellschaft mbH (DEG) is ready to acquire a 19.9% stake in TPL Insurance Limited subject to the approval of the regulatory authorities in Pakistan.
According to the stock filing, the board of directors of TPL Insurance Limited has accorded their approval for an equity investment by DEG– a wholly-owned subsidiary of KfW Group based in Cologne, Germany, a major development finance institution. The company offers financing, advice, and support to private sector enterprises operating in developing and emerging market countries in 21 locations worldwide.
The German company will acquire share by way of fresh issuance of ordinary shares other than by way of the rights issue. It has already accomplished the exercises of legal and financial due diligence of TPL Insurance Limited.
At TPL Insurance Limited, the management has been tasked by the board for negotiation and finalization of deal agreements as well as obtaining requisite corporate and regulatory approvals, including but not limited to shareholders’ approval, Competition Commission of Pakistan’s approval, and Securities and Exchange Commission of Pakistan’s approval.
The foreign investment in the financial sector is a good omen for the country as the foreign group introduces the best practices of businesses along with financial support in the operating company.