By Kim Richters

 

Assicurazioni Generali SpA said Tuesday that it has agreed to buy AXA SA's insurance operations in Malaysia, as part of its strategy to strengthen its position in high-potential markets.

The Italian insurer said it would take over a 70% stake in AXA Affin Life Insurance--49% from AXA and 21% from Affin Bank Berhad. It would also buy a stake of around 53% in AXA Affin General Insurance--49.99% from AXA and 3% from Affin and other minority shareholders.

In a separate release, AXA said it would receive total cash proceeds of around 140 million euros ($166.9 million) for its stakes in the companies, expecting the deal to close by the second quarter of next year.

Generali said it also plans to acquire the remaining stake in its Malaysian joint venture MPI Generali Insurans Berhad, which it shares with local partner MPHB Capital Berhad and currently owns owns 49%. It wants to merge it with AXA Affin General Insurance.

Generali said it expects to spend around EUR262 million for all of the transactions.

 

Write to Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

June 22, 2021 02:02 ET (06:02 GMT)

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