KUALA LUMPUR (June 24): Wong & Partners is advising Generali Asia NV on the proposed acquisition of the shares of AXA Affin General Insurance Bhd (AAGI) and AXA Affin Life Insurance Bhd (AALI) from AXA Asia, Affin Bank Bhd and several minorities.
In a statement today, Wong & Partners announced the group will also be representing Generali in its acquisition of the remaining shares of MPI Generali Insurans Bhd owned by Multi-Purpose Capital Holdings Bhd.
Upon finalisation, AAGI and MPIB will be merged via a scheme of transfer of business, creating the second largest general insurance company in Malaysia, it added.
Wong & Partners also highlighted that the transaction includes an exclusive bancassurance agreement with Affin Bank for the sale of conventional P&C and life insurance products.
The total consideration for the combined transactions is approximately RM1.3 billion (EUR262 million), the statement added.
Generali is proposing to buy a 70% stake in AALI, a 53% stake in AAGI, as well as enlarge its current stake in MPI Generali Insurance Bhd from 49% currently to 100%.
Ee Von Teo, partner and lead transaction counsel of Wong & Partners said: “It has been a privilege for us to work closely with the Generali team on this significant transaction in the insurance industry in Malaysia, which will propel Generali to become the second largest general insurer in Malaysia and mark Generali’s entry into the Malaysian life insurance market.”
John Spence, regional head, M&A and strategy, Asia said: “Generali’s ambition since it acquired its 49% stake in MPIG is to increase its presence in the Malaysian insurance market. Wong & Partners has been with us all the way providing guidance, advice and playing a key role aligning the requirements in this multi-party negotiations.”
The Wong & Partners team for this deal is led by Teo and supported by senior associates Adrian Wong, Cindy Sek, Daniel Tan and associate Ee Rong Song.
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