FWD has announced plans to acquire a 25% stake in Bolttech Insurance (Hong Kong) for a base consideration of $20.72m (HK$161.62m), subject to closing adjustment.
Bolttech Insurance (Hong Kong) is currently a wholly owned subsidiary of Bolttech Discovery Holdings, which is ultimately owned by bolttech Holdings. Its principal business is the underwriting of general insurance business in and from Hong Kong.
Richard Li Tzar-kai, an executive director and controlling shareholder of FWD, is considered to have a material interest in the transaction, because he indirectly holds 30% or more of the issued shares of bolttech Holdings. He accordingly abstained from voting on the board resolutions approving the transaction.
In an exchange filing, FWD said the deal offered it the opportunity to acquire a non-controlling minority interest in a business that operates an established general insurance business in Hong Kong, and with which it has maintained a longstanding commercial relationship.
The insurer added that the move would help further strengthen the existing partnership between the parties in group medical insurance, and enhance cooperation in personal general insurance products, including through enhanced product offerings, distribution, and customer service.
