Malayan Banking Bhd (Maybank) is set to strengthen its position in the insurance and takaful sector after proposing to acquire Ageas Insurance International NV’s 30.95% stake in Maybank Ageas Holdings Bhd (MAHB) for RM4.83 billion.
The proposed transaction will allow Maybank to move closer towards taking full ownership of MAHB, the holding company for Etiqa’s insurance and takaful businesses in Malaysia and Singapore. Maybank currently holds a majority 69.05% stake in MAHB.
In a statement, Maybank said it had entered into an implementation agreement with Ageas as part of the proposed acquisition, which marks a significant step in consolidating its ownership of one of Malaysia’s leading insurance and takaful groups.
Etiqa currently offers a comprehensive range of life and general conventional insurance products, as well as family and general takaful solutions, supported by multiple distribution channels including bancassurance, agents, digital platforms and other customer touchpoints.
Maybank said the acquisition would further strengthen MAHB’s role as a leading national insurance and takaful champion, allowing the group to leverage Maybank’s extensive customer base, regional presence and integrated financial services ecosystem.
The banking group added that full ownership of Etiqa would provide greater strategic flexibility to accelerate expansion across Southeast Asia, supported by Maybank’s established operations and market reach in the region.
The proposed acquisition is also expected to deliver immediate financial benefits, including improvements in profit after tax and minority interest (PATAMI), earnings per share (EPS) and return on equity (ROE). Maybank said the transaction would contribute towards sustainable long-term value creation through stronger earnings growth and enhanced returns.
Additionally, the acquisition is expected to improve capital management efficiency within Maybank’s insurance businesses, creating greater capacity to support sustainable dividend payouts as part of the group’s broader capital management strategy.
Maybank President and Group Chief Executive Officer Datuk Sri Khairussaleh Ramli said the proposed transaction represents a significant milestone in the group’s strategy to further develop its insurance and takaful business across Southeast Asia.
He added that Maybank will continue investing in innovation and digital capabilities to enhance operational efficiency, reduce costs and improve customer experiences.
The RM4.83 billion purchase consideration was determined based on a price-to-book multiple of 1.98 times and a price-to-earnings multiple of 15.3 times.
Maybank said the valuation was calculated after taking into account an RM800 million dividend proposed to be paid by MAHB upon completion of the transaction. Of this amount, Ageas is entitled to receive approximately RM248 million, while the remaining RM552 million will be allocated to Maybank.
The proposed acquisition remains subject to regulatory approval, with Maybank having submitted a formal application to Bank Negara Malaysia for consideration.
For the transaction, Maybank Investment Bank is acting as financial adviser, while Morgan Stanley Asia (Singapore) Pte has been appointed as international financial adviser.
The acquisition highlights Maybank’s continued focus on expanding its integrated financial services ecosystem, while reinforcing Etiqa’s role as a key platform for the group’s future growth in insurance and takaful markets across the region.
