Health minister, family get BSEC nod to sell entire stake at Sunlife Insurance
Currently, Sunlife shares are trading at Tk52.9 apiece
The securities regulator has approved the sale of the entire 43% holding of Health Minister Zahid Maleque and family at the Sunlife Insurance Company to Green Delta Insurance Company and subsidiaries.
The 43% stake, which equals nearly 1.54 crore shares, will be transacted in the block market of the stock exchanges at the prevailing market price.
Currently, Sunlife shares are trading at Tk52.9 apiece. Therefore, the value of the shares to be sold stands at nearly Tk81 crore as per the market price.
Life insurer Sunlife Insurance was listed on the bourses in 2013, and non-life insurer Green Delta Insurance in 1989.
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Zahid Maleque and family are the owners of Sunlife Insurance. The health minister's father late Col A Maleque (PSC) was the company's founding chairman.
In October this year, both the firms informed their shareholders about the share transaction through separate disclosures on the Dhaka Stock Exchange (DSE).
The Bangladesh Securities and Exchange Commission (BSEC), with a no objection certificate from the insurance regulator Insurance Development and Regulatory Authority (Idra), recently approved the share transaction deal between the parties.
The BSEC, however, imposed some conditions along with giving its consent to the transaction.
The conditions
According to the BSEC letter issued on 16 November, the seller and buyers will give appropriate declarations regarding their transactions and depositing of applicable source tax.
The new owners shall form a 13-member board of directors, where each director will hold 2% or more shares of the company.
After completion of the transaction, considering a two-day gap for a T+2 settlement, the new directors of Sunlife shall all jointly hold a minimum 30% of the paid-up capital of the company.
The shares will be locked in for two years, which means, during this period, the new directors will not be able to sell the shares. The transactions must be executed within 30 days after issuance of the letter.
The letter also stated that in the future, if any inconsistency is found and proven in submitted documents and declarations, this approval will be considered cancelled.
Sunlife's present situation
Sunlife Insurance is mainly engaged in individual life, Islamic individual life and group life insurance businesses.
Recently, the company has been facing challenges in settling claims of its policyholders. Some of the clients even sued the company's high officials including chairman and CEO.
This June, the Idra appointed an observer to protect the interest of policyholders and ensure good governance in the company.
The Idra stated that policyholders are constantly filing complaints due to non-payment of insurance claims on time by Sunlife Insurance.
According to its shareholding status in July 2022, the health minister held 8.27%, and his son Rahat Maleque 8.53% shares. Zahid Maleque's wife, son, sister, and sister's husband are the directors at the company.
This August, Sunlife Insurance's board of directors decided to sell four floors of the Niloy Sunlife Tower located at Mohakhali.
According to the company's half-yearly financials in 2023, its total outstanding claim stood at Tk30 crore at the end of June this year.
