KUALA LUMPUR: Malayan Banking Bhd. is nearing a deal to buy out Belgian insurer Ageas SA’s minority stake in Etiqa, people familiar with the matter said, a move that would help Malaysia’s biggest lender take full ownership of the Southeast Asian insurer.
Maybank, as the Kuala Lumpur-listed lender is known, and Ageas are finalising details of a transaction that could be announced as soon as Monday, the people said, asking not to be identified because the deliberations are private. Maybank owns 69% of Etiqa, while Ageas holds the remainder.
The deal may value the stake held by Ageas at about US$1.2 billion, which would give the whole of Etiqa an overall valuation of roughly US$4 billion, the people said.
Talks are ongoing and no final decisions have been made, the people said.
Representatives for Maybank, Etiqa and Ageas didn’t respond to requests seeking comment.
Maybank had been considering options including buying out Ageas’s minority stake in Etiqa, people familiar with the matter had previously said.
Etiqa has more than 6,000 agents and 23 branches, offering both conventional and Shariah-compliant insurance products across multiple distribution channels in Malaysia, Singapore, the Philippines, Indonesia, and Cambodia, according to its website.
Maybank shares have gained almost 4% this year, giving the bank a market value of around US$32.2 billion. Ageas, based in Brussels, has climbed 20% this year, valuing the insurer at US$17.7 billion.
