KUALA LUMPUR (Sept 8): Malayan Banking Bhd (KL:MAYBANK) has received the greenlight from Bank Negara Malaysia (BNM) to acquire the remaining 30.95% stake in Etiqa’s holding company from Belgian insurer Ageas SA for RM4.83 billion.
Following BNM’s approval on Sept 1, the country’s largest bank by assets said in a bourse filing on Tuesday that it had entered into an unconditional share purchase agreement with Ageas Insurance International NV and Ageas SA/NV — the listed parent of the Ageas group — to acquire the remaining stake in Maybank Ageas Holdings Bhd.
First announced on Aug 3, the transaction will be funded entirely through Maybank’s internally generated funds.
Maybank Ageas is currently a 69.05%-owned subsidiary of Maybank through Etiqa International Holdings Sdn Bhd (EIHSB). It is the holding company for Etiqa’s insurance and takaful businesses in Malaysia and Singapore, offering life and general conventional insurance products, as well as family and general takaful products through multiple distribution channels.
Maybank said full ownership of Maybank Ageas would give both the bank and the insurance business greater strategic agility to accelerate product innovation, deepen bancassurance penetration, expand takaful offerings and improve capital and operational efficiency across its insurance and takaful franchises.
The RM4.83 billion price tag, adjusted for an RM800 million dividend to be paid by Maybank Ageas on the completion date, values the company at 1.98 times its book value and 15.3 times its earnings, Maybank said.
Under the arrangement, Ageas will receive RM248 million from the dividend, while Maybank will receive RM552 million.
The transaction is expected to be completed on Sept 11. Upon completion, Maybank’s net assets per share will decline to 7.19 sen from 7.73 sen as at end-December 2025, while total borrowings will rise to RM45.54 billion from RM44.24 billion and gearing to 0.52 times from 0.47 times.
Maybank shares were down two sen or 0.19% at RM10.56 at Tuesday’s noon break, giving the group a market capitalisation of RM127.73 billion.