Affin Holdings Bhd and National Mutual International Pty Ltd (NMI)
have entered into a conditional business transfer agreement with Tahan
Insurance Malaysia Bhd for the acquisition of its life insurance business
for RM121 million cash.
In a statement on Nov 18, Affin said the purchase consideration comprised
RM89.8 million and another RM31.2 million representing the amount Tahan
owes its shareholder, Idaman Unggul Bhd.
“The proposed acquisition would enable the (Affin) group to enhance
its bancassurance offerings and complement the existing general insurance
business currently undertaken by AXA Affin Assurance Bhd, an associated
company of (Affin),” it said.
Affin plans to finance the exercise through internally generated funds
and bank borrowings.
A new company will be incorporated to assume AHB and NMI’s rights
and obligations under the agreement signed on Nov 18. NMI is a wholly-owned
subsidiary of AXA Asia Pacific Holdings Ltd, with which Affin has a joint
venture for the general insurance business in Malaysia under AXA Affin
Assurance.
The proposed acquisition is expected to be completed by the first quarter
of 2006.
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