Privatization of Dana Insurance

Business Materials 22 December 2009 14:50 (UTC +04:00)

The Director of Iran Privatization Organization (IPO) stated that shares of Dana Insurance company will be offered in Tehran Stock Exchange by the end of Iranian calendar month of Dey (ending January 20).

Econews news agency quoted Gholam-Reza Kord-Zanganeh saying that with the entrance of Asia, Dana and Alborz companies into bourse, 25 percent of the capital of Iranian insurance companies will be effectively privatized.

Meanwhile, the Mehr News Agency quoted the director of Asia insurance company stating that 5 percent of the company shares will be offered in bourse on Wednesday next week.

Mohammad -Ali Alipour said on Monday that offering more than 5 percent depends on the demand of the market.

Based on the Article 44 of the Constitution, three state-run insurance companies, namely Alborz, Asia, and Dana should be privatized.

A portion of Alborz Insurance Company, as preferential stocks, had been offered to its personnel earlier in November.

According to Iran's Fourth Five-Year Economic Development Plan (2005-2010), the IPO, affiliated to the Ministry of Economic Affairs and Finance, is in charge of setting prices and offering shares to the general public and on the stock market.

In 2007, Supreme Leader Ayatollah Ali Khamenei requested that government officials speed up implementation of the policies outlined in the amendment of Article 44, and move towards economic privatization.