Sun Life Agrees to Joint Purchase of Malaysian Insurance Company

Financial services company Sun Life Financial (NYSE: SLF  ) announced in a press release Thursday that it has agreed to establish a partnership with the government of Mayalsia's investment arm, Khazanah Nasional Berhad, to purchase a 98% stake in Malaysian life insurance company CIMB Aviva Assurance Berhad and takaful insurance company CIMB Aviva Takaful Berhad.

The acquisition of the two Malaysian firms for nearly $600 million in total, split between Khazanah and Sun Life, will give both a 49% stake in the combined company. CIMB Group will retain a 2% share. The purchase will give Sun Life a route into selling insurance to CIMB's 8 million customers in Malaysia.

Kevin Strain, president of Sun Life Financial Asia, explained the move in the release, saying, "This transaction is perfectly aligned with our strategy for expanding our footprint in Asia. ... we are investing in a country with one of the most developed economies in the ASEAN region and a growing middle class."

 While the transaction will require regulatory approval, it is expected to be completed in 2013's first half.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2204137, ~/Articles/ArticleHandler.aspx, 11/23/2014 1:20:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement