Prudential is increasing its ownership of its Malaysian life insurance business, agreeing to buy an additional 19% stake in its local holding company for about RM 1.52 billion, according to Reuters.
The deal will lift Prudential’s interest in Sri Han Suria to 70%, strengthening its control over its conventional life operations in the country.
Sri Han Suria is the holding firm for Prudential Assurance Malaysia, which forms the core of Prudential’s life business alongside its stake in the takaful operator Prudential BSN Takaful.
Malaysia’s central bank, Bank Negara Malaysia, has approved the transaction and completion is expected in the near term.
The purchase will be made by Prudential Corporation Holdings, a wholly owned subsidiary, from minority shareholder Detik Ria.
The transaction comes after the two parties reached a comprehensive resolution last year that ended a prolonged legal battle over dividend payments.
Prudential said the higher ownership reflects its long-term focus on Malaysia and confidence in the market’s growth prospects.
After completion, Prudential and Detik Ria have agreed to explore options for a potential sale of Detik Ria’s remaining 30% stake in Sri Han Suria to third-party investors, should Detik Ria choose to exit fully.
Featured image: Edited by Fintech News Malaysia, based on image by Freepik
