Japan's Dai-ichi Life Insurance Co. plans to buy the shares it does not already own in Tower Australia Group Ltd for about 100 billion yen ($1.21 billion), as reported by Nikkei business daily.
It would be the first major acquisition by Dai-ichi Life, Japan's second-largest life insurer after Nippon Life Insurance Co, since it listed its shares on the Tokyo Stock Exchange in April after an $11 billion initial public offering.
At the time of its IPO, Dai-ichi Life pledged overseas expansion to erase concerns about its growth prospects in Japan, where the population is falling.
Dai-ichi Life also has minority stakes in Ocean Life Insurance Co in Thailand and Star Union Dai-ichi Life Insurance Co in India, and the move suggests it could raise its stakes in these companies.
Dai-ichi Life, the largest shareholder in Tower after buying a 29.7 percent stake in 2008, will take full control of the midsize Australian insurer through a tender offer next spring, aiming to boost its presence in the Oceania region.
Japanese companies have been actively seeking overseas acquisitions to secure growth outside their mature home market, while taking advantage of the increased purchasing power provided by the recently stronger yen.
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