Affin Holdings to boost stake in AXA Affin General Insurance

PETALING JAYA: Affin Holdings Bhd has proposed to acquire an additional 12.87% stake in AXA Affin General Insurance Bhd (AAGI) from Felda Marketing Services Bhd (Felma), an indirect subsidiary of Felda Global Ventures Holdings Bhd (FGV), for RM180.54 million cash.
In a filing with Bursa Malaysia, the group said its unit Affin Bank Bhd has entered into a share purchase agreement with Felma for the proposed acquisition.
Currently, AXA AFFIN GI is a 37.07%-owned associate company of Affin Bank. Upon completion of the proposed acquisition, the bank will hold 49.95% equity interest in the general insurance company, allowing it to record a higher share of AAGI’s results.
FGV considers the proposed disposal as a good opportunity to monetise its investment in AAGI at a commendable return and is in line with the company’s present strategy which is to focus on enhancing its core business performance and strategic divestment of non-core businesses in its effort to maximise the shareholders’ value.
Nonetheless, it said the proposed acquisition is not expected to have a material effect on the group’s earnings and earnings per share for the financial year ending December 31, 2017.
Barring any unforeseen circumstances, the board expects the proposed acquisition to be completed within the fourth quarter of 2017.
Affin Holdings slipped 3 sen or 1.29% to RM2.30 with 134,000 shares traded. FGV's share price was up one sen to close at RM1.70 with some 2.76 million shares traded.