Malaysia-based banking group Bumiputra-Commerce Holdings has accepted offers from insurance firms Aviva and Allianz totaling MYR990 million for stakes in three of its insurance units.
According to Bloomberg, Aviva Asia is to purchase a 49% stake in Bumiputra’s Commerce Life Assurance and Commerce Takaful units for MYR500 million in cash. Allianz will also purchase a 100% share in Commerce Assurance for MYR490 million.
The acquisitions are in line with Bumiputra’s strategy to strengthen its range of insurance products and services.
The transaction is subject to regulatory approval and is scheduled to be completed during the second quarter in 2007. Bumiputra expects the acquisitions to contribute around MYR650 million to the company’s 2007 net profit.