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Khazanah’s Avicennia Capital plans to purchase 90% stake in Acibadem Sigorta

Malaysia-based Khazanah Nasional’s insurance holding company Avicennia Capital has reached an agreement to purchase a 90% shareholding in Acıbadem Sağlık ve Hayat Sigorta in Turkey, in a deal valued at $252m.

Acquisition of a majority stake in the Turkish insurer, which offers health insurance services for corporate and individual clients, will enable the acquirer to boost its footprint in the growing underwriting market of the country.

As per terms of the agreement, Avicennia Capital will purchase a combined 90% stake from Mehmet Ali Aydinlar and family and the Abraaj Group through its special purpose vehicle Burau Ventures.

Following completion of the transaction, Aydinlar will remain holding a 10% stake in Acibadem Sigorta, which also manages six regional offices across the country.

In April 2013, the company acquired CIMB Aviva insurance businesses in Malaysia.

Khazanah managing director Tan Sri Dato’ Azman Hj. Mokhtar said, "The acquisition of Acibadem Sigorta by Avicennia Capital provides us with the opportunity to invest in a quality asset and allows us to tap into the attractive growth opportunities offered by the Turkish insurance market."

The transaction is pending receipt of approvals of regulatory approvals in Turkey and Malaysia, as well as satisfying certain conditions.

Bank of America Merrill Lynch and CIMB collectively acted as financial advisors to Avicennia Capital and Khazanah on the transaction.

Operating as an insurance holding company, Avicennia Capital owns a 49% stake in CIMB Aviva Assurance, a Malaysian life insurance company, and CIMB Aviva Takaful, a Malaysian takaful company.