Maybank to buy Ageas stake in Etiqa for $1.5 billion, becoming full owner
Etiqa has more than 6,000 agents and 23 branches in Malaysia, Singapore, the Philippines, Indonesia, and Cambodia.
Malayan Banking, also known as Maybank, has reached an agreement to purchase Ageas' minority stake in Etiqa, which will give Maybank full ownership of the Southeast Asian insurer. The transaction is valued at around RM4.83 billion (USD1.5 billion). This news was announced on August 3. The acquisition needs to be approved by Bank Negara Malaysia, the country's central bank, and is expected to be finalized by 2026.
Ageas has been operating in the Malaysian market since 2001 via a joint venture with Maybank, and expanded into Singapore in 2014. The deal is expected to increase Etiqa's valuation to approximately USD4 billion (S$5.1 billion). Maybank's shares have risen by nearly 4% this year, giving the bank a market value of around USD32 billion.
Ageas, headquartered in Brussels, has gained about 20% this year, putting the insurer's valuation at around USD17 billion. Maybank plans to fund the buyout through internal and external funding sources. Maybank's president and group chief executive, Khairussaleh Ramli, stated that the transaction marks a significant milestone for Maybank in advancing its insurance and Takaful business in Southeast Asia.
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