Some Income minority shareholders disappointed over failed Allianz deal

They had hoped to cash out, but will now have to turn to open market option

- Claire Huang

Retiree John Tay and his wife are among the 16,000 or so Income Insurance shareholders who are again in limbo.

This comes after German insurer Allianz on Dec 16 said it would withdraw its proposed offer to buy a 51 per cent stake in local insurer Income.

The 65-year-old and his wife hold about 4,000 shares.

They have been shareholders of Income Insurance since the 1990s, when it was still a cooperative.

The collapse of the proposed deal came two months after the Government intervened and amended the Insurance Act, and five months after the preliminary offer was made public.

Mr Tay said now that Income is corporatised and self-sustaining, it is very different from when it was a cooperative and received grants.

He asked if Income, now a corporate entity, should continue with the social mission role and "force minorities like us to partake in the social mission".

"Must minority shareholders (who are mostly individuals) personally fund the social mission initiatives?" Mr Tay said.

Another minority shareholder who spoke on condition of anonymity told The Straits Times that the silent minority are left in the wake of the firestorm and are the ones most affected.

"I am disappointed at this outcome, like many of the retiree shareholders I met at the last annual general meeting, who have held on to Income's shares for decades and have been looking forward to cashing out the shares," the shareholder said.

He added that minority shareholders are now left with the "sub-optimal" option of "willing buyer, willing seller" transactions "in an inefficient market that is neither public stock exchange-based nor is it liquid".