Malayan Banking (Maybank) said on Monday it would buy the remaining 30.95% interest in its unit that holds the Etiqa businesses in Singapore and Malaysia for 4.83 billion ringgit ($1.18 billion) from Belgian insurer Ageas SA.
Maybank Ageas holds the Etiqa businesses in Malaysia and Singapore, which offer conventional and Shariah-compliant (Takaful) insurance.
The purchase price was adjusted for an 800 million ringgit dividend proposed by the unit on completion of the stake acquisition. Ageas will receive 248 million ringgit in dividends, while Maybank receives the rest.
Maybank, Malaysia’s largest lender, will fund the buyout through internal and external funding sources, it said in a statement.
Shares of the lender were flat at 0526 GMT.
“This transaction represents an important milestone for Maybank in charting its insurance and Takaful business’ next growth phase across Southeast Asia,” Maybank President and Group CEO Khairussaleh Ramli said.
The bank also said it had submitted a formal application to the central bank, Bank Negara Malaysia, for approval.
Reuters
