Canada’s Fairfax Financial Holdings Ltd has agreed to buy 80 per cent of PT Asuransi Multi Artha Guna Tbk (AMAG) for about $165-million, sending shares of the Indonesian insurer to a record high. Fairfax, in a statement late on Monday, said it would buy the stake from PT Paninvest Tbk and affiliates in a deal likely to close by year-end.
On Tuesday, AMAG shares rose as much as 15.5 per cent to 462 rupiah ($0.035), compared with just 0.7 per cent in the broader market.Fairfax’s deal with the Panin Group, controlled by Indonesia’s Gunawan family, highlights foreign interest in the Southeast Asian country’s general insurance market after a number of deals in recent years in the life insurance segment.
Japan’s Sumitomo Life Insurance Co bought 40 per cent of the life insurance arm of PT Bank Negara Indonesia Tbk, while compatriot Dai-ichi Life Insurance Co Ltd acquired 40 per cent of Panin Life.
Fairfax said it would integrate AMAG with its Indonesian subsidiary, and that AMAG would enter a long-term general insurance partnership with PT Bank Pan Indonesia Tbk.
No comments:
Post a Comment