The four parties were initially expected to sign agreements for the distribution of life insurance and family takaful products, a type of Islamic insurance
GREAT Eastern’s Malaysian subsidiaries have terminated their proposed acquisition of AmMetLife Insurance (AML) and AmMetLife Takaful (AMT).
“Great Eastern Holdings wishes to announce that the implementation agreement has been terminated, and parties to the implementation agreement have mutually agreed not to pursue the proposed acquisition,” said the insurer in a bourse filing on Monday (Feb 3).
In October last year, Great Eastern Life Assurance (Malaysia) and Great Eastern Takaful entered into an agreement to fully acquire the shares of AML and AMT, respectively.
The four parties were also expected to sign exclusive 20-year bancassurance and bancatakaful agreements for the distribution of life insurance and family takaful products, a type of Islamic insurance.
These products were to be issued through the distribution network of AMMB Holdings’ banking units across Malaysia. AMMB Holdings is part of the AmBank group and its business segments include retail banking, business banking and investment banking.
The consideration for the proposed acquisition and exclusive distribution tie-up was about RM1.1 billion (S$325 million) and payable wholly by cash.
Based on audited financial statements of AML and AMT as at Mar 31, 2023, their aggregate net asset value was about RM819 million.
Shares of Great Eastern have been suspended from trading since Jul 15.
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