Skip to content
Grazia British
Prudential pays RM1.5 billion to raise stake in Malaysia unit to 70%

Prudential pays RM1.5 billion to raise stake in Malaysia unit to 70%

By Swedan Margen

Fashion

The insurer currently holds a 51% interest while local partner Detik Ria owns the rest

Prudential will pay RM1.5 billion (S$483 million) in cash to increase its stake in Prudential Assurance Malaysia to 70 per cent, from 51 per cent currently, the company said on Thursday (Jan 22).

The insurer will purchase the additional 19 per cent stake in Sri Han Suria (SHS), the holding company for its Malaysian conventional life insurance unit, from local partner Detik Ria – which currently owns 49 per cent of SHS.

The transaction will leave Detik Ria with a 30 per cent stake.

Prudential said that the deal would allow it “to gain more economic benefit from SHS, whilst balancing commercial appetite in terms of capital outlay and increased risk profile arising from an increased stake”.

It would be accretive to the group’s earnings per share, traditional embedded value and shareholders’ equity, said Prudential.

The purchase price was determined based on SHS’ financial performance for the year ended Dec 31, 2024.

SEE ALSO

Prudential said this month that it will start a fresh share buyback of up to US$1.2 billion.
Hong Kong’s IPO market has seen a flurry of high-profile listings already this year.

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

During that period, the SHS Group reported a profit after tax of RM1.1 billion and a net asset value of RM9.7 billion.

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

More Fashion