Affin Bank, Generali ink

agreement to effect planned

merger of their insurance
business in Malaysia
Sufi Muhamad
/
theedgemarkets.com

December 09, 2022 23:21 pm +08

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KUALA LUMPUR (Dec 9): Affin Bank Bhd has inked a business transfer
agreement (BTA) to merge its general insurance business in Malaysia under AXA
Affin General Insurance Bhd or AAGI with Generali Asia NV's, which will result
in Affin Bank holding a 30% stake in the enlarged insurance company, with
Generali controlling the remaining 70%.
The agreement comes after Affin Bank completes the partial disposals of its equity
interests in the joint ventures AXA Affin Life Insurance (AALI) and AAGI to
Generali, which acquired a 70% stake in the former (49% from AXA and 21%
from Affin Bank) and 53% in the latter (49.99% from AXA and 2.95% from Affin
Bank).

The disposals saw the exit of AXA from the JVs and made Generali the new JV
partner for Affin Bank in the insurance operations.

In announcing the completion of the disposals in August, Affin Bank said the pair
planned to integrate the businesses of MPI General Insurance (MPIG) and AAGI,
with Affin Bank holding 30% equity stake in both AALI and AAGI upon full
integration.

In a Bursa Malaysia filing on Friday, Affin Bank announced that the business
transfer agreement to effect the merger has been signed with Generali Asia, MPIG
and AAGI.

AAGI will issue 67.46 million shares of AAGI (representing 36.71% of the
enlarged and paid up share capital worth RM765 million of AAGI after the
issuance of the shares to Generali Asia) to complete the merger.

"The proposed merger will result in a dilution of Affin’s shareholding in AAGI

from 47% to 30% in the enlarged AAGI," it said.

The merging parties will make a joint application no later than 30 days from the
date of the business transfer agreement to give effect to the business transfer
scheme.

“Subject to the court order being obtained, the completion of the sale and purchase
of the business shall take place at 0001 hours on Feb 28, 2023 (or notwithstanding
anything else to the contrary, such other date as may be ordered by the High Court)
whereby the business shall be transferred from MPIG to AAGI,” said Affin Bank.
At market close, Affin Bank Bhd’s share price remained unchanged at RM2.06,
giving it a market capitalisation of RM4.56 billion.

Tan Choe Choe