Malayan Banking Bhd (Maybank) has agreed to acquire Ageas Insurance International NV’s remaining 30.95% stake in Maybank Ageas Holdings Bhd for RM4.83 billion, paving the way for Malaysia’s largest lender to take full control of the Etiqa insurance and takaful businesses.
Maybank currently owns 69.05% of Maybank Ageas, which houses Etiqa’s Malaysian and Singaporean operations across life and general insurance, as well as family and general takaful.
According to Maybank President and Group CEO Datuk Seri Khairussaleh Ramli, the acquisition forms part of Maybank’s ROAR30 strategy to strengthen Etiqa’s position as a national champion, deepen customer penetration and accelerate its expansion across Southeast Asia.
It is also expected to immediately lift Maybank’s profit attributable to shareholders, earnings per share and return on equity.
He shared that the purchase price was adjusted for an RM800 million dividend proposed by Maybank Ageas upon completion, of which RM248 million will go to Ageas and RM552 million to Maybank. The deal will be funded through a combination of internal and external sources.
However, Khairussaleh said the proposed acquisition remains subject to Bank Negara Malaysia’s approval.
“Maybank has submitted a formal application together with the implementation agreement and agreed form of the share purchase agreement,” he added.
Maybank Investment Bank Bhd and Morgan Stanley Asia (Singapore) Pte are financial advisor and
international financial advisor, respectively, on the proposed acquisition.
