Maybank has struck a RM4.83 billion deal to fully own the holding company behind Etiqa’s Malaysia and Singapore businesses.
The bank will acquire Ageas Insurance International NV’s remaining 30.95% stake in Maybank Ageas Holdings Berhad (MAHB). Maybank currently owns 69.05%.
MAHB houses Etiqa’s insurance and takaful businesses in Malaysia and Singapore.
Maybank expects full ownership to give it greater flexibility to expand bancassurance, wealth and takaful offerings across the region.
MAHB is currently the fourth-largest takaful provider globally, according to the bank.
The deal is also expected to be immediately accretive to Maybank’s profit after tax and minority interests, earnings per share and return on equity.
The RM4.83 billion purchase price factors in an RM800 million dividend that MAHB plans to pay upon completion.
Ageas will receive RM248 million, with the remaining RM552 million going to Maybank.
The transaction values MAHB at 1.98 times book value and 15.3 times earnings.
Maybank will fund the acquisition through a mix of internal and external sources.
The deal remains subject to Bank Negara Malaysia approval.
Maybank President and Group CEO Dato’ Sri Khairussaleh Ramli said,
“This transaction represents an important milestone for Maybank in charting its insurance and takaful business’ next growth phase across Southeast Asia.
We will also continue to invest in innovations and leverage digital capabilities to improve productivity, reduce operating costs, and deliver better customer experience. New and existing customers will also have access to expanded suite of solutions including enhanced product offerings.”
Maybank and Ageas have been partners since 2001.
Featured image: Edited by Fintech News Malaysia, based on image by qaseemz via Magnific
