‘EPF, KWAP in talks with Great Eastern’
KUALA LUMPUR: The Employees Provident Fund (EPF) and Retirement Fund Inc (KWAP) are said to have held talks with Singapore-based insurer Great Eastern Holdings on the purchase of a minority stake in the latter’s Malaysian unit.
Wall Street Journal (WSJ), citing sources, said the deal between EPF and the insurance firm could fetch as much as US$1 billion (RM3.9 billion).
“Negotiations are in the early stages, with no certainty of a transaction. Great Eastern could look to list its insurance unit through an initial public offering (IPO) in Malaysia if no deal is reached,” people familiar with the matter told WSJ.
They said even if the talks were to fail, EPF could participate in the potential listing of Great Eastern Life, albeit with a lower stake.
WSJ quoted the sources as saying a share sales through IPO could raise almost US$3 billion.
News reports said Bank Negara Malaysia had given foreign insurers until the end of June to re- duce stakes in their local units to 70 per cent.
KWAP chief executive officer Datuk Wan Kamaruzaman Wan Ahmad told NST Business recently that it was a step closer to acquiring stakes in foreignowned insurance firms this year and expected its deal with Prudential Plc to materialise first.
“We are currently talking to two parties, including Prudential and Great Eastern Holdings Ltd. Most likely, the deal with Prudential will materialise. We are hopeful,” he said.
Bloomberg reported last year, quoting sources, that Prudential, Great Eastern and Japan’s Tokio Marine Holdings Inc were among companies pursuing plans to cut stakes in their Malaysian units.