Finnish Fund to acquire stake in TPL Insurance

KARACHI: The board of directors of TPL Insurance Limited received a draft term sheet in respect of the investment by the Finnish Fund for industrial cooperation, which seeks to invest in the financial businesses in Asia and Africa, a bourse filing said on Tuesday.

“The draft term sheet was presented before the board of directors and it has mandated the management of the company to negotiate the terms and revert back for the approval of the transaction once the terms are finalised,” it added.

The Finnish Fund for Industrial Cooperation Limited (Finnfund) is a private limited company incorporated in Finland, and a major development financier and impact investor, investing in responsible and profitable businesses in the developing countries.

Earlier this month, Finnfund and the University of Helsinki agreed to invest into micro-financing in Africa and Asia.

In July, TPL Insurance announced that Finnfund had expressed its intent to invest in TPL Insurance Limited, a Pakistan-based subsidiary of TPL Corporation Limited.

The company said upon completion of successful legal and financial due diligence and obtaining all regulatory approvals, Finnfund will look to invest in TPL Insurance Limited.

Founded in 1980, Finnfund made 31 investments with a total worth of 206 million euros in 2020. New investment decisions target mainly (98 per cent) countries of low or lower-middle income, in which the need for sustainable development investments is greatest.

TPL Insurance offers a host of products and services through a 24-hour call centre operations with claims and underwriting services, also pioneered the concept of web-based services to allow customers to interact and retrieve progress of their insurance policies and claims.