Janashakthi Insurance PLC says that its Board of Directors has authorized in principle the sale of all its shares held in its wholly owned subsidiary Janashakthi General Insurance Limited. The terms of sale are in the final stages of negotiations.

The transaction would also be subject to the approval of the shareholders of Janashakthi Insurance PLC by way of a special resolution since it is a major transaction and would also have to satisfy the regulatory criteria specified by the Insurance Regulatory Board.

The Board of Janashakthi Insurance PLC also states that it had agreed in principle to implement a substantial repurchase of its shares following the sale of Janashakthi General Insurance Limited.

Meanwhile, the Bank of Ceylon had earlier sold 10,594,286 of its shares, which is 1.9 per cent of its stake in Janashakthi Insurance PLC at Rs. 20.00 per share.