Great Eastern has announced that its Malaysia subsidiaries have officially entered into an implementation agreement with AMAB Holdings – a wholly owned subsidiary of AMMB Holdings Berhad and MetLife International – to acquire two of its insurance businesses in the country.
Under the proposed acquisition deal, Great Eastern Life Assurance Malaysia (GELM) and Great Eastern Takaful Berhad (GETB) will acquire 100% of the shares of both AmMetLife Insurance Berhad (AML) and AmMetLife Takaful Berhad (AMT).
After the proposed acquisition is finalized, GELM is expected to possess 100% of the shares in AML, and GETB will hold 100% of the shares in AMT. Additionally, this acquisition is planned to oversee exclusive 20-year bancassurance and bancatakaful agreements among GELM, AML, GETB, and AMT for the distribution of life insurance and family takaful products through the distribution network of AMMB’s banking subsidiaries – AmBank Berhad and AmBank Islamic Berhad – across Malaysia.
The acquisition is also contingent upon regulatory approvals from Bank Negara Malaysia and/or the Malaysia’s finance minister, as well as the Monetary Authority of Singapore (MAS).
“We look forward to partner with AmBank (M) Berhad and AmBank Islamic Berhad to offer our insurance and takaful solutions to the bank’s three million customers. 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,” Great Eastern Group CEO Khor Hock Seng said.
It was a few weeks ago when news first broke that the Singapore-based insurance group was in early negotiations to acquire the Malaysian businesses in a bid to bolster Great Eastern’s presence in the country. A finalized transaction could be worth anywhere between $250 million and $350 million, sources close to the matter said.
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