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KUALA LUMPUR, Malaysia, April 28, 2014 /PRNewswire/ -- AMMB Holdings Berhad's ("AmBank Group") wholly-owned subsidiary, AMAB Holdings Sdn Bhd, and MetLife, Inc.'s subsidiary, MetLife International Holdings, Inc. ("MetLife"), today completed the signing of a stock purchase agreement. This signing demonstrates the good and important bilateral commercial relations between Malaysia and the US, and was witnessed by YAB Datuk Seri Najib Tun Razak, Prime Minister of Malaysia and President of the United States of America ("US"), Barack Obama.
This long-term strategic partnership aims at capturing an increasing market demand for life assurance and family Takaful in Malaysia. The signing of the stock purchase agreement will see MetLife own 50 percent plus one share in AmLife Insurance Berhad ("AmLife") with the remaining shares to be owned by AmBank Group, and AmBank Group owning 50 percent plus one share in AmFamily Takaful Berhad ("AmTakaful") with the remaining shares to be owned by MetLife. The total consideration payable by MetLife is RM812mil (equivalent to USD249 million) upon completion, subject to customary adjustments.
This new partnership is an example of the mutual benefit that comes from increasing business collaboration between Malaysia and the United States, which President Barack Obama and Prime Minister Datuk Seri Najib Tun Razak have pledged to continue to support and encourage.
"We are indeed very privileged to have the presence of the President of the United States and the Prime Minister of Malaysia to witness this momentous signing ceremony between two very strong conglomerates, one a Malaysian and the other, from the United States. This partnership between AmBank Group and MetLife ultimately aims to enhance our value proposition to customers by meeting their evolving needs with relevant and innovative solutions, and thereby expand our market share," said Tan Sri Azman Hashim, Chairman of AmBank Group and AmLife Insurance Berhad.
With operations in nearly 50 countries, MetLife brings its financial strength, global reach, expertise and customer centric approach endeavoring to improve the breadth of choice and experience of Malaysian consumers while leveraging AmBank Group's domestic insights and abilities.
Speaking about the signing ceremony, Mr. Christopher Townsend, President MetLife, Asia, said: "This partnership further advances MetLife's strategy of expansion in high growth markets, and develops our presence in the attractive markets of South East Asia. We feel honored that President Obama and YAB Datuk Seri Najib Tun Razak, Prime Minister of Malaysia witnessed this proud moment in our respective company's histories, and we are very excited and eager to start this long-term partnership with a well-established and respected institution such as AmBank Group".
As part of the deal, MetLife will provide significant management resources and attention to the new joint venture entities and at the same time AmLife and AmTakaful will respectively enter into exclusive 20-year bancassurance and bancatakaful agreements to provide innovative and customer centric financial planning and protection products through AmBank Group's banking network across Malaysia.
Mr Ashok Ramamurthy, Group Managing Director, AmBank Group, said, "This partnership reaffirms the Group's commitment and focus in delivering on our strategic agenda. We are convinced that MetLife will be an excellent strategic partner for the Group as we progress towards our vision -- as Malaysia's preferred diversified, internationally connected financial solutions group -- we take pride in growing your future with us."
The deal is expected to close by the end of the month, upon which a phased and collaborative integration process will be conducted.
