Proposed Acquisition of the General Insurance Business of Safety Insurance Berhad by Mayban General Assurance Berhad, a subsidiary of Maybank ("Proposed Acquisition")

Nov 12, 2001 Back
Type Announcement
Subject MALAYAN BANKING BERHAD ("Maybank")
- Proposed Acquisition of the General Insurance Business of Safety Insurance Berhad by Mayban General Assurance Berhad, a subsidiary of Maybank ("Proposed Acquisition")

Contents :

Aseambankers Malaysia Berhad on behalf of Maybank, is pleased to announce that Mayban General Assurance Berhad ("MGAB"), a 94.83% subsidiary of Mayban Fortis Holdings Berhad, in turn a 70% subsidiary of Maybank, had on 9 November 2001 entered into a Business Acquisition Agreement ("BAA") with Safety Insurance Berhad ("SIB") to acquire the general insurance business of SIB.

The purchase consideration for the Proposed Acquisition shall be satisfied entirely by cash and is based on 1.2 times the adjusted net tangible assets of SIB's business ("Adjusted NTA") as at 30 September 2001.

The Proposed Acquisition is conditional upon the following conditions being fulfilled:

(i) receipt by SIB of the written approval of Bank Negara Malaysia of the scheme of transfer pursuant to Section 128 of the Insurance Act, 1996;

(ii) receipt by MGAB of the written approval of the Foreign Investment Committee;

(iii) MGAB and SIB obtaining a Court Order confirming the scheme of transfer;

(iv) all qualifications or disclosures (if any) made by SIB in the BAA being acceptable to MGAB;

(v) written confirmation by MGAB that it is is satisfied with the results of a due diligence investigation conducted by MGAB on SIB; and

(vi) MGAB and SIB having agreed on the value of the Adjusted NTA and the Completion Adjusted NTA.

 

Announcement Info

Company Name MALAYAN BANKING BERHAD  
Stock Name MAYBANK    
Date Announced 12 Nov 2001  
Category General Announcement
Reference No CU-011109-57114