IAG Reports Progress on China Pacific Share Acquisition

July 6, 2006

Insurance Australia Group Limited announced that negotiations for the acquisition of a 24.9 percent stake in China Pacific Property Insurance Co., Ltd. (CPPI) have “progressed to the stage that draft transaction agreements have been confirmed for the purposes of lodgement with the China Insurance Regulatory Commission (CIRC) for preliminary review.”

IAG announced the acquisition in February, indicating it plans to spend between A$350-375 million (U.S.$260-$278 million) to acquire the stake.

“The parties intend to proceed to signing the transaction agreements as soon as possible following the CIRC’s review and formal approval by the shareholders of China Pacific Insurance (Group) Co., Ltd. (CPIC Group), the parent company of CPPI,” said the bulletin.

“Pending completion of the CIRC’s review and CPIC Group shareholder approval, IAG is unable to provide any further detail on the draft transaction agreements,” the announcement continued.

The Company said it would give further details “when the transaction agreements are signed.” It also noted that “once the transaction agreements are signed, there will be further regulatory approvals required, which may take up to four months to complete.”

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