KB Insurance is reportedly eyeing a 17 per cent stake in Bao Minh Insurance to become its second-largest shareholder. In the pharmaceutical sector, German manufacturer STADA Arzneimittel has increased its holding in its Vietnamese unit, Pymepharma, to 72 per cent.
KB Insurance said to acquire 17% of Bao Minh Insurance
KB Insurance, a unit under South Korean conglomerate KB Financial Group, is said to be eyeing a 17 per cent stake in Vietnamese insurer Bao Minh.
Bao Minh, which is 50.7 per cent owned by the government, is Vietnam’s third-largest non-life insurance company with an 8.2 per cent market share.
If the deal materializes, KB Insurance will become Bao Minh’s second-largest shareholder. AXA Insurance currently holds a 16.7 per cent stake in the Vietnamese firm.
KB Insurance will hold a board meeting early next month and decide on the stake acquisition plan. The company will sign a formal agreement as soon as the board of directors approves the proposal, according to Korean media reports.
The move comes at a time when several South Korean non-life insurance companies have expanded into the Southeast Asian country through M&A.
Hyundai Marine & Fire Insurance recently agreed to purchase a 25 per cent interest in Vietinbank Insurance, while Samsung Fire & Marine had acquired 20 per cent of Vietnam’s fifth biggest non-life insurer PJICO in 2017.
Vietnam’s financial services sector is seeing increased interest from Korean investors. Most recently, KEB Hana Bank was selected as the strategic investor that will buy a 15 per cent stake in the Bank for Investment and Development of Vietnam (BIDV).
STADA Arzneimittel ups stake in Pymepharma to 72%
German pharmaceutical group STADA Arzneimittel has increased its indirect shareholding in the Vietnamese affiliate Pymepharco to 72 per cent.
“Vietnam is one of the key growth markets in Asia where we want to continually expand in the future. Our extended investment in Pymepharco is an excellent basis for this,” said Peter Goldschmidt, CEO of STADA.
STADA said it sees Vietnam as one of the most attractive pharmaceutical markets in this region, with consistent double-digit growth in recent years and currently an equally stable outlook.
Pymepharco is currently the second-largest generic prescription manufacturer in Vietnam and is amongst the top five pharmaceutical companies in the country.
The company also provides more complex dosage forms as well as prescription-free drugs and dietary supplements.
STADA has been a strategic investor in Pymepharco since 2008, having supported the Vietnamese company in the development of technology and the introduction of the EU GMP (Good Manufacturing Practice) standards.