AXA Exit Malaysia (Again)

Bank Bhd has obtained approval from the Ministry of Finance (MoF) to dispose of 21% of its equity interest in AXA Affin Life Insurance Bhd (AALI) and 2.95% stake in AXA Affin General Insurance Bhd (AAGI) to Generali Asia NV.

Affin Bank currently owns 51% in AALI and 49.95% in AAGI. In a statement on Monday, Affin Bank said it will enter into a share sale agreement with Generali Asia for the AALI and AAGI disposals, subject to the satisfaction of the remaining signing conditions under the implementation agreement and further announcements will be made accordingly.

Affin Bank has also agreed for the general insurance business of AAGI and MPI Generali Insurans Bhd (MPIG) to be merged under AAGI whereby AAGI will acquire certain assets and liabilities of MPIG via a business transfer to create an enlarged company, subject to the approval of BNM.

Following that, a new local company (Newco) will be incorporated to hold all of the shares in AALI and AAGI (MergeCo). Affin Bank will, in turn, be holding 30% equity interest in the Newco, with Generali holding the remaining 70%.