Affin Bank inks business transfer deal with 3 insurers for a merger

Affin Bank inks business transfer deal with 3 insurers for a merger

Merger with Generali Asia NV, MPI Generali Insurans and Axa Affin General Insurance to be completed in Q1 2023.

Merger will see a dilution of Affin Bank’s shareholding in Axa Affin General Insurance to 30%
PETALING JAYA:
Affin Bank Bhd has signed a business transfer agreement (BTA) with Generali Asia NV, MPI Generali Insurans Bhd (MPIG) and Axa Affin General Insurance Bhd (AAGI) for a proposed merger.

The proposed merger will result in a dilution of Affin’s shareholding in AAGI to 30% from 47% in the enlarged AAGI.

“The proposed merger is undertaken as part of the proposals and barring any unforeseen circumstances, the proposed merger is expected to be completed in the first quarter of 2023,” it said in a filing with Bursa Malaysia today.

Affin Bank had on May 18, 2022 entered into a share sale agreement with Generali Asia for a proposed disposal of 21% equity interest in Axa Affin Life Insurance Bhd (AALI) to Generali Asia for a cash consideration of RM70.79 million subject to adjustments.

It also entails a proposed disposal of 2.95% equity interest in AAGI to Generali Asia for a cash consideration of RM84.74 million subject to adjustments; and a proposed acquisition by AAGI of certain assets and liabilities of MPIG via a BTA to AAGI (proposed merger).

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