28 September 2011
Bank Negara's capital adequacy requirements for insurance and Takaful businesses are being blamed for MAA Holdings having to dispose of its entire stake in Malaysian Assurance Alliance and three other wholly-owned subsidiaries to Zurich Insurance of Switzerland for a bargain basement price of RM344m ($108m).
Bank Negara's capital adequacy requirements for insurance and Takaful businesses are being blamed for MAA Holdings having to dispose of its entire stake in Malaysian Assurance Alliance and three other wholly-owned subsidiaries to Zurich Insurance of Switzerland for a bargain basement price of RM344m ($108m).
The subsidiaries are Multioto Services, Malaysian Alliance Property Services and Maagnet Systems.
MAA chairman Ya'acob Tunku Sri Abdullah said: "Although the price offered is low, our shareholders have decided to proceed with the sale in view of the high capital adequacy Bank Negara requires for insurance business".
MAA will use the funds to grow its existing Takaful and unit trust businesses - and build on its hopes to become an investment house.
Abdullah went on to say that: "Merger and acquisitions will be part of our growth strategy. We want to buy companies cheaply and sell them at a premium."
© The Islamic Globe 2011
