Met Life 61 p.c. sells for $55M

Press, 14 September 1988, Page 37

Met Life 61 p.c. sells for $55M

PA Wellington Larry Adler’s FAI Insurances, Ltd, yesterday spent $55 million to take control of Met Life Group, Ltd.

FAI paid 185 c each (ex dividend) for 29.73 million shares representing 61 per cent of Met Life’s issued capital, including 38 per cent owned or controlled by Met Life directors. FAI intends to bid for 100 per cent of the New Zealand insurance company, offering 185 c a share. Met Life has advised shareholders not to sell shares pending dispatch of the offer documents. Met Life shares last traded at 134 c. The bid values the Met Life Group at about $9O million. It is subject to Overseas Investment Commission and Commerce Commission approval.

FAI is listed on stock exchanges in New Zealand, London, Hong Kong, Singapore and Switzerland as well as Australia. It recently announced a record net profit of sAustl7lM (SNZ22O million), for the year to July. The company has total assets valued at sAust2.277 billion and it has shareholders’ funds of sAust4Bo.67BM. According to FAI, Met Life has about 5 per cent of the life market in New Zealand. It recorded a $5.12M profit for the six months ended August and a 5c a share interim dividend will be paid on September 30. The group recently ex-

panded across the Tasman, opening Met Life Australia and an insurance bonds joint venture with Standard Chartered Bank. A Met Life director who did not wish to be named said Met Life had about 200,000 policy-holders and assets of $3OO million. He said the acquisition provided FAI with “an instant, strong presence in this country. "FAI is the largest listed fire and general office in Australia. They are looking to Met Life for experience in life assurance,” he said. Met Life’s current directors would retain their positions. “FAI bought our man-

agement skills and expertise and they are keen to see us stay,” the director said. “The game has just begun.” In a separate statement, Met Life said it was inevitable that the company would have to grow quickly to remain competitive in a deregulated financial sector, particularly in the light of the closer economic relations agreement with Australia. It was not a question of if but of how, the statement said. Met Life executive chairman, Mr Charles St Clair Brown, was last evening returning to New Zealand from Australia.