JAKARTA – PT Hanwha Life Insurance Indonesia (HLII), the majority shareholder of PT Lippo General Insurance Tbk (LPGI), plans to divest 46.6% of its shares in the company.

In a disclosure to the Indonesia Stock Exchange (IDX) on 10 March, HLII stated that it had signed a share purchase agreement to sell 1.39 billion shares of LPGI to PT Hanwha General Insurance (HGI) on 10 March.

Before the transaction, HGI held 447 million LPGI shares (14.9%). As of the end of February, HLII was recorded as owning 59.46% of LPGI shares, equivalent to 1.78 billion shares.

Agus Benjamin, President Director of LPGI, explained that once the preliminary conditions for the sale are met, HGI will officially own 1.84 billion shares of LPGI, or 61.5% of the company's issued and paid-up capital.

It should be noted that following the transaction, HGI will not be required to conduct a tender offer, as the controlling shareholder of the company remains Hanwha Life Insurance Co Ltd., the parent of both HLII and HGI. (DH/ZH)