Market Overview

Sun Life, Khazanah Nasional Berhad Partnership to Purchase CIMB Aviva

Sun Life Financial (NYSE: SLF) (Sun Life) and Khazanah Nasional Berhad (Khazanah) are
establishing a strategic partnership to acquire 98 per cent of CIMB
Aviva Assurance Berhad, a Malaysian life insurance company, and CIMB
Aviva Takaful Berhad, a Malaysian takaful company (together, the
Company), in a transaction valued at 1.80 billion Malaysian Ringgit
(RM) (C$586 million). Sun Life and Khazanah are each paying RM900
million (C$293 million) in respect of the transaction, which includes
entering into a new 20-year exclusive bancassurance agreement with CIMB
Bank.

Sun Life and Khazanah are each acquiring 49 per cent of the Company from
Aviva International Holdings Limited and CIMB Group Holdings Berhad
(CIMB Group), respectively. CIMB Group will retain a two per cent share
in the Company.

The transaction includes an exclusive right to distribute insurance
products, including takaful products, through CIMB Bank's network
across Malaysia. This network includes 312 branches across the country
and eight million customers.

"This transaction is perfectly aligned with our strategy for expanding
our footprint in Asia," said Kevin Strain, President, Sun Life
Financial Asia. "With Khazanah and CIMB, we have

See full press release

Posted-In: Earnings News Guidance Contracts Management M&A Global

 

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