KUALA LUMPUR: AMMB HOLDINGS BHD [] (AHB) has agreed to proceed with the proposed acquisition of the general insurance business of Malaysian Assurance Alliance Bhd (MAA Assurance) at a lower price and without the strategic acquisition of a 4.9% stake in MAA Takaful Bhd.

In a statement yesterday, AHB said it and MAA HOLDINGS BHD [] had agreed to proceed with the transaction on the general insurance on a standalone basis and the headline price for the proposed general insurance acquisition would accordingly be revised from RM254.8 million to RM180 million, subject to adjustments.

AHB’s 51%-owned subsidiary AmG Insurance Bhd had earlier proposed to acquire the general insurance business and the 4.9% stake in MAA Takaful. They have submitted the revised proposals to Bank Negara Malaysia for approval and expect the deal to be done during the second quarter of 2010.


This article appeared in The Edge Financial Daily, November 18, 2009.