KWAP may consider IAG stake if Prudential deal doesn't materialise

April 23, 2018 | By | Reply More

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KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) (KWAP) may consider taking up Insurance Australia Group’s investment in Malaysia, if ongoing talks to buy a stake in an American insurer’s business here fails.

“We are one of the institutional investors in talks with several foreign insurers seeking to pare down their local business stake to 70 per cent, as per Bank Negara’s mandate,” said KWAP chief executive officer Datuk Wan Kamaruzaman Wan Ahmad.

“The deadline for the ongoing talks, set by Bank Negara, is the end of this month. It is now a critical time for KWAP,” he told reporters at a briefing here today.

Last month, a news report highlighted that Prudential PLC was in advanced talks with KWAP to sell a minority stake in Prudential Assurance Malaysia Bhd to comply with Bank Negara’s ruling that foreign ownership be pared down to 70 per cent from the current 100 per cent.

“If the current talks falls through, we can, later, seek the board approval and Bank Negara’s permission to consider IAG’s offer,” Wan Kamaruzaman said.

Recently, it was reported IAG, Australia’s biggest general insurer by market share, is looking to sell off its four southeast Asian businesses in deals that could be valued at about US$500 million, as it seeks to monetise its assets.

In Malaysia, IAG owns a 49 per cent stake in AmGeneral Holdings Bhd, the general insurance arm of AmBank Group.

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