Great Eastern Holdings plans to pay RM1.12 billion ($325 million) for the insurance businesses now under Malaysia'a AMMB Holdings and MetLife International Holdings.
Specifically, Great Eastern Life Assurance (Malaysia) (GELM) will buy AmMetLife Insurance, while Great Eastern Takaful Berhad (GETB) will buy AmMetLife Takaful (AMT).
The acquisitions, to be paid using all cash, will come with an exclusive 20-year-long distribution partnership between Great Eastern and the AmBank network.
As at March 31, the units to be acquired had a total net asset value of RM819 million.
The acquisition is subjected to regulatory approvals from both sides of the Causeway.
Great Eastern's group CEO Khor Hock Seng says he looks forward to this partnership with AmBank and AmBank Islamic Berhad to offer insurance and takaful solutions to the bank’s three million customers.
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"This opportunity will provide both GELM and GETB with an expanded distribution network to serve the Malaysian residents, and further reinforce our commitment in the insurance and family takaful industry in Malaysia," he adds.
Great Eastern shares ended Oct 2 at $18, down 0.28%.
