KUALA LUMPUR, March 2, 2010 – Boustead Holdings Berhad (Boustead Group) marked a significant corporate exercise today by disposing its 80% stake of BH Insurance (M) Berhad to AXA Affin General Insurance Berhad. The move is in line with the Group’s decision to streamline its insurance business.
The exercise will see the disposal of the Boustead Group’s shares for the amount of RM363 million. Felda Marketing Services Sdn Bhd which owns 20% of BH Insurance also disposed of its shares to AXA Affin and in exchange has now taken up a 16% equity in the business. The four parties: AXA S.A., AXA Affin General Insurance, Boustead Group and Felda Marketing signed the relevant legal agreements today.
YBhg. Gen (R) Tan Sri Dato’ Seri Mohd Zahidi Bin Hj. Zainuddin, Chairman of Affin Holdings Berhad, said, “The Affin Group is confident this exercise will place us on a stronger footing to build a larger financial services group in Malaysia. Additionally, we are bullish on the prospects ahead and are heartened with this strengthened partnership with AXA S.A.”
According to YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Group Managing Director, Boustead Holdings Berhad, “Boustead Group’s strategic decision to dispose of its equity in BH Insurance bodes well for us given the positive impact to our bottom-line and the fact that this will help pare down our gearing as well.”
Mr. Jan van den Berg, CEO AXA Asia General Insurance and board member of AXA Affin General Insurance, said, “This acquisition is important for the long-term growth of AXA Affin in Malaysia. It is an opportunity to increase AXA’s footprint in one of the key markets in Asia. With close to 6% of the market share now, we aspire to be in the top five position in the very near future.”
Upon completion of the sale and purchase agreement, the shareholding of AXA Affin will be as follows: AXA-42.4%; Affin Holdings Berhad-33.6%; Felda-16% and minority shareholders will hold 8% equity.
Affin Holdings Berhad
Affin Holdings Group is a major home-grown financial services conglomerate. The Group’s activities focus on commercial, Islamic and investment banking services, money broking, fund management and underwriting of life and general insurance business. The prominent shareholder of AFFIN Holdings is Lembaga Tabung Angkatan Tentera, the nation’s premier superannuation fund manager for the armed forces. As at 31 December 2009 the Group’s unaudited paid-up capital stood at RM1.5 billion, while the Group’s shareholders’ fund was at RM4.7 billion.
Boustead Holdings Berhad
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiary and associate companies, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group’s operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading and manufacturing & services. As at 31 December 2009, Boustead Holdings Berhad’s paid-up capital is RM456 million, while its shareholders’ funds stand at RM3.8 billion. Market capitalisation currently is in excess of RM3 billion.
AXA Affin General Insurance
AXA Affin General Insurance Berhad is a joint venture between the AXA SA and Affin Holdings Berhad, a leader in Malaysia’s financial services industry. AXA Affin General Insurance employs more than 400 people. The company began its operation in Malaysia more than 130 years ago, under different setups. It has been focusing on growth in Malaysia and is one of the most profitable in the insurance industry. AXA Affin currently services its 250,000 customers through 17 offices in Malaysia.
AXA SA is a worldwide leader in Financial Protection. AXA’s operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area. In Asia, AXA provides financial protection to individuals, SME and corporate customers and operates in Singapore, Malaysia, Indonesia, Thailand, Hong Kong, Philippines, Korea, Japan, China and India.
Issued on behalf of: Boustead Holdings Berhad, Affin Holdings Berhad
By: acorn communications sdn bhd
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