Tune Insurance buys Indonesian insurer for RM22.8m

PETALING JAYA: Tune Insurance Holdings Bhd (TIH) has bought a controlling stake in Indonesian general insurer, PT Asuransi Staco Mandiri (ASM), for 82.86 billion rupiah or RM22.79 million, to expand its business beyond Malaysia.
"The investment in ASM will enable TIH Group to have a controlling interest in a local general insurer in Indonesia, through which TIH Group can directly underwrite its online insurance businesses and offer products through other channels in the fast growing and sizeable markets in Indonesia," it added.
ASM engages in general insurance business and also has a syariah business unit.
The portfolio sales of ASM consists of fire insurance, general accident insurance, marine cargo insurance and other general insurance classes of business.
The audited net profit and net assets of ASM for the financial year ended Dec 31, 2014 were about RM1.22 million and RM28.49 million.
In a filing with Bursa Malaysia yesterday, TIH said it has executed a conditional binding offer letter with shareholders of ASM to own a total of 81,942 shares or 50% plus one share equity interest in the republic's insurer.
The deal will see TIH acquire 38,235 ordinary shares of 500,000 rupiah each or 31.82% of the issued and paid-up shares, or 23.33% of the enlarged share capital, from three selling shareholders of ASM for 26.76 billion rupiah or 700,000 rupiah per share.
TIH bought 27,576 shares equaling to a 22.95% stake in ASM from Dana Pensiun Bank Mandiri Dua, 9,203 shares from Yayasan Kesejahteraan Pensiun (7.66%) and 1,456 shares from 1 Dana Pensiun Pertamina (1.21%).
TIH will also subscribe for 43,707 newly issued shares in ASM for 30.59 billion rupiah or 26.67% of the enlarged share capital in ASM.
It also entered into a cooperation agreement for PT Cahaya Putratama Abadi (CPA) for IDR25.5 billion.
CPA is to assist TIH to become the holding company of ASM, to facilitate the acquisition process and to provide further assistance and business development services for the expansion of TIH's insurance business in Indonesia.
TIH said an application for approval with respect to the proposed investment and change of shareholding has been submitted to the regulator Otoritas Jasa Keuangan Indonesia (OJK) by ASM.
The conditional agreements will take effect once it receives Bank Negara Malaysia and OJK approvals.
TIH said the opportunity to be ASM's strategic partner presented itself when OJK stipulated an increase in minimum capital requirements for Indonesian insurers.