Aseana Insurance completes mandatory tender offer for majority stake in ABDA

PT Asuransi Bina Dana Arta Tbk. (ABDA), a general insurance issuer, announced on 29th November 2022 that Aseana Insurance Pte. Ltd (Aseana) has successfully completed the mandatory tender offer for ABDA shares. The tender offer was conducted from 18th October to 16th November 2022, and the payment for the offer was made on 25th November 2022.

Aseana has purchased a total of 47,115,204 ABDA shares from public shareholders who participated in the mandatory tender offer during the offer period. The Corporate Secretary of ABDA, Ratih Kusumadiga, confirmed that Aseana now owns 94.77 percent of ABDA shares or 588,313,138 shares. The total cost incurred by Aseana for this acquisition was IDR 320.52 billion, with a dowry of IDR 6,803 per share.

This acquisition has significant implications for ABDA’s future operations and strategic direction. With Aseana’s majority ownership, ABDA is likely to undergo significant changes in its management, operations, and strategic objectives. Aseana is a well-established insurance company with a strong presence in the Southeast Asian insurance market. ABDA’s collaboration with Aseana will bring significant benefits in terms of operational efficiencies, technology advancements, and customer satisfaction.

The acquisition of ABDA shares by Aseana also has broader implications for the Indonesian insurance sector. The insurance industry in Indonesia has been growing rapidly in recent years, driven by the country’s economic growth, increasing affluence, and growing awareness about the importance of insurance. With Aseana’s entry into the Indonesian insurance market, there is likely to be increased competition and innovation, which will ultimately benefit customers and the overall industry.

In conclusion, Aseana’s successful acquisition of a majority stake in ABDA is a significant development for both companies and the wider insurance industry in Indonesia. It will be interesting to observe the changes and innovations that will result from this acquisition, and the impact it will have on the Indonesian insurance market in the coming years.