PETALING JAYA: Affin Bank Bhd has obtained approval from the Minister of Finance (MOF) for the disposal of 21% of its equity interest in AXA Affin Life Insurance Bhd (AALI) and 2.95% of its equity interest in AXA Affin General Insurance Bhd (AAGI) to Generali Asia NV.
Bank Negara Malaysia (BNM) informed Affin of the approval last Friday.
Affin and Generali entered into an implementation agreement on June 22, 2021 for the AALI and AAGI disposals. In addition, Affin agreed for the general insurance business of AAGI and MPI Generali Insurans Bhd (MPIG) to be merged under AAGI whereby AAGI will acquire certain assets and liabilities of MPIG via a business transfer (AAGI and MPIG merger) to create an enlarged company (MergeCo), subject to the approval of BNM.
A new local company (Newco) will be incorporated to hold all of the shares in AALI and AAGI (MergeCo). Affin will, in turn, be holding a 30% stake in Newco, with Generali holding the remaining 70%. Consequently, Affin is required to make a submission for its shareholding in Newco to BNM within one month from May 6, 2022.
Affin Bank president and group CEO Datuk Wan Razly Abdullah sees synergistic growth opportunities for AAGI and AALI with this joint venture with Generali and the ability to enhance its financial solutions and products offerings to customers through the future bancassurance partnership with Generali.
Affin will enter into a share sale agreement with Generali Asia for the AALI and AAGI disposals subject to the satisfaction of the remaining signing conditions under the implementation agreement.
