5 JUNE 2002
The merger of Globe Financial Management plc with the Malta branch of British American Insurance is to go ahead. The merger will create Maltas largest non-banking financial services organisation, operating in the field of investment advice, retirement planning, life and health insurance.
The process will involve the transfer of British American Malta business to Globe Financial Investment Management plc.
In return Globe Financial Management will issue new shares. British American will hold not less than 47 per cent and not more than49.9 per cent share capital in the merged company.
Speaking at the press conference, Mr William Van Buren of Globe Financial Investment said the merger was approved at a meeting by 90 percent of shareholders of Globe Financial Management plc with the Malta Branch of British American Insurance.
The new approved name is to be Global Financial Services plc. The outcome of this merger, which still needs to be approved by the regulators, will be a larger financial institution. Through this process sources of income will become available also from the field of insurance.
Mr Van Buren spoke of the synergy that would be created; that of better management of resources under one group. Both British American and BUPA will be housed at the premises of Globe Organisation, providing a one-stop-shop for financial services.
Mr Ian Zammit, Chief Executive Officer of British American said that his company has been operating in Malta since 1965 and was also the owner of the BUPA agencies.
Mr Zammit said that British American always looked at opportunities that would enable it to become a base in Malta, rather than just a branch and the merger would provide just such an opportunity.
The new company intends to operate outside Malta as well