Forum: Need to be more rigorous when examining future proposals after failed Allianz-Income deal
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Some Singaporeans are understandably relieved at the timely intervention by the Government to block the contentious $2.2-billion deal between NTUC Income and German insurer Allianz on concerns over the deal structure and the ability of the local insurer to continue its social mission ( Parliament passes Bill enabling Govt to block Allianz-Income deal NTUC central committee not aware of capital reduction plan in Allianz-Income deal: Desmond Tan
It is puzzling that the NTUC central committee was briefed on the strategic synergies of the deal for Allianz to buy a controlling stake in Income, but not on the capital reduction plan to return $1.85 billion to shareholders.
As Minister for Culture, Community and Youth Edwin Tong said, Singapore continues to be open to future new proposals if the terms and structure of the proposed deal are robust, protect the public interest, and do not compromise the ability of Income to carry out its social mission.
Hopefully, the takeaways from this failed deal will provide food for thought for a more holistic, rigorous and thoughtful methodology with which to screen investments and assess future proposals.
Woon Wee Min
