Affin gets central bank nod to buy AAGI stake

KUALA LUMPUR: Affin Holdings Bhd has received Bank Negara’s nod to acquire 7.07% equity interest in AXA Affin General Insurance Bhd (AAGI) from Felda Marketing Services Sdn Bhd for RM99.09mil.

The financial services group told Bursa Malaysia that the proposed acquisition would boost the equity interest in AAGI held by Affin or its commercial banking unit Affin Bank Bhd from 37.07% to 44.14%.

Affin had in March last year received Bank Negara’s go-ahead to start negotiations with Felda Marketing Services, AXA Asia and subsequently the minority shareholders to acquire additional AAGI shares.

In February, Bank Negara informed Affin that it had no objection for an extension of six months up to Aug 5 for Affin to complete its negotiations with Felda Marketing Services and AXA Asia in relation to the proposed deal.

Last month, the company said it was seeking the central bank’s approval to acquire 7.07% equity interest in AXA Affin General Insurance Bhd (AAGI) from Felda Marketing Services Sdn Bhd for RM99.09mil in cash.

For the financial year ended Dec 31, 2016, AAGI recorded a profit before tax of RM181.2mil.

This was higher than the previous year’s RM114.8mil.

According to Affin’s annual report, this increase was mainly due to higher underwriting results and higher investment income from gain on sale of investment.