The government is to dispose of its remaining 11% stake in Amin Reinsurance, said media reports, adding that the date for the divestiture has been set for the end of October.
The sale is expected to promote privatisation and fast track the development of the Iranian insurance industry – still far from attaining a global status – especially if a foreign bidder succeeds in purchasing the government’s stake, reported Financial Tribune. The remaining shares will be placed on sale on the Iran Fara Bourse, the country’s over-the-counter market.
“There are only a handful of reinsurance companies in the country and since the industry is still underserved, this presents a niche for both domestic and foreign investors,” said Mr Farid Dehdilani, the international advisor to Iranian Privatization Organisation (IPO), the main body in charge of divesting state assets belonging to the Economy Ministry.
“We have received significant interest so far about the event because first and foremost, you don’t need a lot of money to make the purchase, and secondly, the company for sale is already a public firm, which means there is transparency,” he said.
He added that the buyer of the government’s stake in the company would secure a place on the board as well as voting rights.
“There would be no restrictions on purchasers and the highest bidder would simply get the deal in the most transparent manner,” he said, adding that although some foreign and domestic suitors have already approached the IPO about the deal, the bidding process would take place through open competition.
The government is also planning to sell its remaining state shares in three insurers, namely, Alborz, Dana and Asia Insurance. The divestment will be in line with the general policies of an article in Iran’s Constitution, declared 11 years ago, the report said.
According to the Sixth Five-Year Development Plan (2017-22), in order to expand the activities of the insurance industry and improve the business environment, state-owned shares in insurers, with the exception of the Central Insurance of Iran and Iran Insurance Company, should be divested. M