Maybank To Fully Own Maybank Ageas Holdings In RM4.83 Bln Deal

KUALA LUMPUR, Aug 3 (Bernama) -- Malayan Banking Bhd (Maybank) has entered into an Implementation Agreement (IA) with Ageas Insurance International NV (Ageas) to acquire the remaining 30.95 per cent stake in Maybank Ageas Holdings Bhd (MAHB) for RM4.83 billion, paving the way for full ownership of the insurance and takaful holding company.

MAHB is the holding company for Etiqa businesses in Malaysia and Singapore, providing a full range of life and general conventional insurance products as well as family and general takaful products through multi-channel distribution.  

In a filing with Bursa Malaysia today, Maybank said the agreed purchase price, after adjustments for MAHB's proposed RM800 million dividend, represents a price-to-book multiple of 1.98 times and a price-to-earnings multiple of 15.3 times.

Maybank would fund the proposed acquisition through a combination of internal and external funding sources. 

In conjunction with the proposed acquisition, a formal application to Bank Negara Malaysia has been submitted for approval, together with the executed IA and agreed form of the Share Purchase Agreement. 

Maybank Investment Bank and Morgan Stanley Asia (Singapore) Pte are the financial adviser and international financial adviser, respectively, to Maybank on the proposed acquisition. 

Maybank president and group chief executive officer Datuk Seri Khairussaleh Ramli said that this is the start of an exciting journey for Maybank’s ROAR30 strategy as the banking group continues investing in Etiqa, a national champion, to drive growth and expand customer penetration regionally while delivering value to shareholders. 

“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," he said.

Khairussaleh said new and existing customers would also have access to expanded suite of solutions including enhanced product offerings. 

This, he added, is part of Maybank's strengthened commitment to improving accessibility and making insurance and takaful protection easier to be obtained by all consumers. 

"Going forward, Maybank will continue to drive long-term value creation for its shareholders, and owning MAHB fully is one of the initiatives for the aforesaid purpose," he said.

According to Maybank, the acquisition would strengthen its insurance and takaful franchise through deeper customer penetration, support regional expansion across Southeast Asia, enhance long-term shareholder value through earnings accretion, and improve capital management efficiency to support sustainable dividend payout.

“Maybank would also like to thank Ageas for its invaluable contribution in developing the Etiqa franchise with Maybank since 2001, when our partnership first started," Khairussaleh added. 

-- BERNAMA