AMMB TO FINALISE INSURANCE DEAL BY YEAREND
Source: The Star, 23 August 2013 According to the Group Managing Director Ashok Ramamurthy, AMMB Holdings Bhd is expecting to shortlist a new partner for its insurance business in October and finalise the deal by year-end. The group had initiated a bidding earlier aiming to divest up to 70 per cent of its insurance businesses AmLife Insurance Bhd and AmFamily Takaful Bhd. According to past reports, the deal for the insurance assets could be worth as much as US$600 million (RM1.99billion). Ashok noted that the group was well advanced in the search for potential partners and had completed round one of the process. Following the central bank’s response, AMMB would then embark on the presentations and valuations to shortlist one potential partner for the central bank’s approval. Ashok explained that the group thinks it has an attractive life insurance and takaful story for the next 20 to 25 years and would like to stay invested in the business with a partner who would be able to bring the right ideas and skills to the group. In June, according to a Bloomberg report, AMMB had invited four companies, including Hong Kong tycoon Richard Li’s Pacific Century Group, to make second-round bids for its life insurance units. Manulife Financial Corp, Metlife Inc and Zurich-based ACE Ltd had also been invited to submit binding offers for as much as 70 per cent of AmLife Insurance Bhd and AmTakaful Family Bhd.