TPL Corp Limited (PSX: TPL) Monday said its Board of Directors has granted its in-principle approval for VEON Group Holding Company Ltd to acquire shares and control in its subsidiary, TPL Insurance Limited.
“The board has further authorized the company to negotiate the terms of the offer and to facilitate the due diligence process in accordance with applicable laws,” the firm said in a notice to the Pakistan Stock Exchange (PSX).
Last week, VEON Group Holding Company Ltd, a subsidiary of Nasdaq-listed VEON Ltd, announced its intention to acquire shares and management control in TPL Insurance Limited, signaling a potential entry into Pakistan’s insurance sector.
Read more: VEON Group Expresses Intention to Buy TPL Insurance
VEON has not yet disclosed the number of shares or the purchase price, noting that the deal is contingent on due diligence and the signing of definitive agreements.
If the acquisition goes through, VEON will be required to make a public offer for at least 50% of TPL Insurance’s remaining voting shares.
Currently, TPL Corp Limited holds the largest stake in TPL Insurance at 52.87%, followed by the Finnish Fund for Industrial Cooperation Ltd with 17.02% and Entwicklungsgesellschaft MBH with 15.87%. The insurer’s paid-up capital stands at 198.39 million shares.
