The group of businessman Eusebio Tanco has signed a deal to buy 70 percent of AsianLife Financial Assurance Corp. (ALFA) from the Maybank ATR KimEng Financial Corp. for P428.4 million.
In a disclosure to the Philippine Stock Exchange on Thursday, MaybankATRKE said an agreement had been signed on the sale of about 12.25 billion shares in ALFA to STI Investments Inc.
The 70-percent stake sold to STI was held by MaybankATRKE’s 95.24-percent subsidiary, AsianLife General Assurance Corp. (ALGA).
“The disposal of ALFA would not have a limiting effect on ALGA’s insurance capability as ALGA itself has a composite insurance license,” the company said in a statement.
Maybank ATRKE president Manuel Tordesillas said the group could stay focused on its core business if it unloads ALFA and concentrates instead on ALGA.
The disclosure said the purchase price of P428.4 million was equivalent to 15 times ALFA’s book value as of end-2011. The share purchase agreement is subject to certain conditions precedent to closing, including obtaining regulatory approvals.
Prior to this transaction, Tanco—who also controls PhilPlans Care and PhilPlans First Inc.—was a minority beneficial shareholder and board member of ALFA.
Together, ALFA and ALGA accounted for consolidated insurance premiums of P1.5 billion in 2011, up by 10 percent from the previous year.
Outside of insurance, Maybank ATRKE has interests in investment banking, capital market, asset management and real estate.
The local firm’s new foreign principal owner, the Maybank Group, is Malaysia’s regional financial services leader with an international network of over 2,200 offices in 17 countries.