Malayan Banking (KLSE:MAYBANK) agreed to acquire the remaining 30.95% stake in Maybank Ageas from Belgium-based joint venture partner Ageas for 4.83 billion ringgit.
Maybank said the acquisition is expected to strengthen its insurance and takaful business by deepening customer penetration, supporting regional expansion across Southeast Asia and improving capital management efficiency, according to a Monday press release.
The bank expects the deal to be immediately accretive to profit attributable to shareholders, earnings per share and return on equity, while supporting sustainable long-term earnings growth.
Maybank will fund the acquisition through a combination of internal and external sources.
The deal, which values Maybank Ageas at a price-to-book multiple of 1.98 times, is subject to approval from Bank Negara Malaysia.