CITYSTATE Holdings, the Singapore-based general insurer, has paid HK$88 million for Hong Kong's Asia Pacific Insurance (API).
Citystate funded the purchase by enlarging its paid-up share capital to about $270 million through the issue of about 15.4 million shares.
The company, which sells general insurance in the territory through subsidiary Citystate Insurance, plans to boost its local market share and launch into Taiwan, Vietnam and the mainland.
API was formerly known as OTB Assurance when it was a subsidiary of the Overseas Trust Bank and was 49 per cent government owned.
In November 1993 the company was sold to the Guoco Group, with stakes being taken by the Asia Insurance Company of Hong Kong and The Asia Insurance Company of Singapore.
Gross written premium for the 1994 financial year was $143 million, with profit before tax of $10.3 million.