CIMB Group Holdings Berhad (“CIMB Group”)has reached an understanding with Khazanah Nasional Berhad (“Khazanah”) to sell its stake in CIMB Aviva Assurance Berhad, a Malaysian life insurance company, and CIMB Aviva Takaful Berhad, a Malaysian takaful company (together, “the Companies”), for a total consideration of RM1,110.0 million.
The purchase consideration will be satisfied by a cash component of RM1,066.5
million as well as shares (worth RM 43.5 million) in a new insurance holding
company, Renggis Ventures Sdn Bhd, wholly owned by Khazanah. As a result, CIMB Group will maintain an effective 2% interest in the Companies.
As part of the agreement, Khazanah will be entering into a strategic partnership
with the Canadian insurer Sun Life Financial Inc. (“Sun Life”) in respect of the
Companies. The Companies will have the exclusive right to distribute its
insurance products, including takaful products, through CIMB Bank’s network
across Malaysia. This network includes 312 branches across the country and a
base of over 8 million customers.
“This divestment will enable us to reduce our spread of activities and release
capital,” said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group.
“We look forward to working with the new bancassurance partners we have chosen
after an extensive selection process. Bancassurance remains a core component of
our wealth management proposition and we believe that the enhanced bancassurance agreement and the potential regional synergies will enable our new partners to manufacture and support a more competitive product range for us to take to our customers,” added Nazir.
The disposal of CIMB Group’s stake is subject to regulatory approvals and the
execution of the appropriate legal documentation.
CIMB Group is Malaysia’s second largest financial services provider and one of
ASEAN’s leading universal banking groups. It offers consumer banking, investment
banking, Islamic banking, asset management and insurance products and services.
Headquartered in Kuala Lumpur, the Group is now present in nine out of 10 ASEAN
nations (Malaysia, Indonesia, Singapore, Thailand, the Philippines, Cambodia,
Brunei, Vietnam and Myanmar). Beyond ASEAN, the Group has market presence in
China, Hong Kong, Bahrain, India, Sri Lanka, Australia, Taiwan, Korea, the US
CIMB Group has the largest retail branch network in ASEAN of more than 1,100
branches as at 31 December 2012. CIMB Group’s investment banking arm is also
emerging as the largest Asia Pacific-based investment bank following its
recently announced purchase of RBS’ Asia Pacific investment banking and cash
The bank operates its business through three main brand entities, CIMB Bank,
CIMB Investment Bank and CIMB Islamic. CIMB Group is also the 97.9% shareholder of Bank CIMB Niaga in Indonesia, and 93.7% shareholder of CIMB Thai in Thailand.
It is listed on Bursa Malaysia via CIMB Group Holdings Berhad. It had a
market capitalisation of approximately RM56.71 billion as at 31 December 2012.
The Group has over 43,000 employees located in 18 countries.