Malaysia-based Affin Bank is seeking approval from Bank Negara Malaysia (BNM) to increase its stake in
AXA Affin General Insurance.
Affin wants to purchase an additional 5.81% stake in its joint venture with AXA from Felda Marketing Services for MYR81.44 million (US$19.91), reported
Edge Markets. This is in addition to a 7.07% equity interest worth MYR99.09 million (US$24.2 million) Affin is acquiring from Felma Marketing, which BNM approved in September.
In a stock exchange filing, Affin Holdings Bhd, Affin Bank’s parent company, said that it submitted an application for BNM’s approval to enter a share purchase agreement with Felda, representing a total 12.88% stake, or 15.33 million shares, in AXA Affin General Insurance.
If approval is granted and the deal is completed, Affin Bank’s total stake in the insurer will rise from 37.07% to 49.95%.
While domestic ownership in AXA Affin General Insurance is above the minimum of 30%, Malaysian firms seem keen in increasing their stakes in insurance joint ventures, alongside the Malaysian government’s enforcement of a foreign ownership cap of 70%.
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