KUALA LUMPUR: Khazanah Nasional Bhd’s insurance arm Avicennia Capital Sdn Bhd has entered into an agreement to acquire a 90% stake in Acibadem Saglik ve Hayat Sigorta, a Turkish health insurance services provider.

According to Khazanah, the acquisition is for a consideration of US$252 million (RM811.44 million).

Tan Sri Azman Mokhtar, Khazanah managing director, said: “The acquisition of Acibadem Sigorta by Avicennia Capital will provide us with the opportunity to invest in a quality asset and will allow us to tap into the attractive growth opportunities offered by the Turkish insurance market. The transaction also broadens our presence in the insurance sector.”

The acquisition will be done through Burau Ventures Sdn Bhd, a special purpose vehicle by Avicennia Capital, from Mehmet Ali Aydinlar and family and The Abraaj Group. Aydinlar will retain a 10% stake in Acibadem Sigorta.

Avicennia Capital now owns a 49% stake in CIMB Aviva Assurance Bhd and CIMB Aviva Takaful Bhd.

Khazanah said in a statement Acibadem Sigorta is a leading provider of health insurance services for corporate and individual clients in Turkey, and has the second largest market share in the industry.

Khazanah said it has the approval of regulators in Turkey and Malaysia for the acquisition, adding that Bank of America Merrill Lynch and CIMB are joint financial advisors to Avicennia Capital and Khazanah on the acquisition.

Khazanah’s portfolio of insurance assets also includes ACR Capital Holdings Pte Ltd, which specialises in providing conventional and takaful reinsurance solutions for large and complex risks.

ACR is the world’s first independent reinsurance company with an exclusive focus on serving clients in the fast growing pan-Asia region, extending from the Middle East, through China to Japan and Southeast Asia.

This article first appeared in The Edge Financial Daily, on July 30, 2013.