July 31, Colombo: Fairfax Asia Ltd, a wholly owned subsidiary of Canada-based insurance holding company Fairfax Financial Holdings Ltd, has agreed to buy a 78% holding in the Union Assurance PLC, a subsidiary of John Keells Holdings (JKH), a stock market disclosure said today.
Union Assurance announced that it has entered into an agreement to divest 78% stake in its General Insurance Business to Fairfax Asia upon completion of the segregation of the General and Life Insurance businesses of the company under a scheme of arrangement.
Based on the projected financial statements of the company as at 31st December 2014 and for purposes of the transaction, the overall value of the General Insurance Business is estimated at approximately Rs. 4.5 billion.
The transaction is subject to customary closing conditions, including the successful completion of due diligence along with regulatory and court approvals, the JKH said.
The deal is expected to be closed by the first quarter of 2015.
Fairfax Asia is a wholly-owned subsidiary of Fairfax Financial Holdings Limited, a Canadian financial services holding company, which, through its subsidiaries, is engaged in property and casualty insurance and invest management.