Softlogic, Asian Alliance merge synergies
New medical products under Asiri brand:
Softlogic Holdings’ proposed acquisition of Asian Alliance Insurance
will see the merging of synergies of the businesses of the parent
company in terms of health, motor and retail sectors.
Asiri and Central Hospitals are both owned by Softlogic Holdings and
the acquisition of Asian Alliance Insurance would give these hospitals a
tremendous boost and the competitive advantage of offering healthcare
policies through AAIC, Softlogic Holdings Chairman Ashok Pathirage told
Daily News Business yesterday.
“This is the only instance now in the Colombo Stock Exchange of a
hospital company which is listed also owning a listed insurance company
and there will be lots of opportunities of providing health cover to
patients. “We see a definite growth in the sector. We will also be
shortly going for new insurance products which will come under the Asiri
brand,” he said.
Softlogic Finance currently offers leasing facilities for motor
vehicles. The general insurance arm of Asian Alliance Insurance together
with Daihatsu and new Ford agency both held by Uniwalkers, whose
ownership and management of Softlogic group will provide synergies any
business conglomerate would dream of, Pathirage said. “The insurance arm
will also provide the large amount of consumer goods marketed by the
retail divisions also to come under the Softlogic Group such as the
National television and computer software and hardware as well,” he
“All consumer items sold by Softlogic Holdings will automatically be
covered by insurance from AAIC which would tremendously boost the sales
and there will be lots of synergies within the group, he said.
He said Softlogic was fortunate to buy Asian Alliance act Rs 120 per
share when the current market price was Rs 140 per share. “It is a well
managed company and we struck a deal in our bid to take the company to
the next level of business,” he said. Asian Alliance Insurance Director
and CEO Ramal Jasinghe said this was a very good move and he welcomed
the new owners. “We would like to go to the next level of market
development with the acquisition, consolidating the market position as
the force to be reckoned with,” he said. Market sources also point out
that Asian Alliance (AAIC) Price Earnings Ratio was lower than that of
Softlogic and as a result of the proposed acquisition, Softlogic shares
would be cheaper and attractive.
This was something investors have been expressing concern prior to
the Initial Public Offering, they said. Asian Alliance Insurance
Company’s Life insurance funds, under management, is around Rs 3
billion. This will give Softlogic Capital a tremendous fee based income
from the fund management.