Pakistan's TPL Insurance approves Germany’s DEG equity investment

The BoD of TPL Insurance Limited have accorded their approval for an equity investment by DEG, a Germany development finance institution of 20 percent equity interest in the company.

“We are pleased to announce that the Board of Directors of TPL Insurance Limited (“the Company”) have accorded their approval for an equity investment by DEG – Deutsche Investitions – und Entwicklungsgesellschaft mbH (“DEG”), a wholly-owned subsidiary of KfW Group based in Cologne, Germany, a major development finance institution, of up to 19.9% equity interest in the Company by way of fresh issuance of ordinary shares other than by way of the rights issue,” informed TPL in its filing to the bourse on Tuesday.

It is pertinent to mention that DEG is re-entering into the Pakistani market with the investment being a first, in an insurance company by a Development Finance Institution in recent times in Pakistan.

The company informed that while legal and financial due diligence has already been carried out by DEG, the management of the Company has been authorized by the Board for negotiation and finalization of deal agreements as well as obtaining of requisite corporate and regulatory approvals, including but not limited to Shareholders’ approval, Competition Commission of Pakistan’s approval and Securities and Exchange Commission of Pakistan’s approval.

“This is the beginning of a promising future for our organization. DEG, with a portfolio of EUR 8.6 billion and a geographic presence in over 80 countries, finances enterprises that focus on lasting success and operate responsibly – just as we do. It is indeed our privilege to play a pivotal role in strengthening Pakistan’s relationship with Germany, create jobs to stimulate the economy, and continue to offer value-added services to our customers,” said, Muhammad Aminuddin, CEO, TPL Insurance back in June.