Foreign insurers plan US$2 billion of Malaysia deals

(July 20): Overseas insurers including Prudential Plc are pursuing plans to sell stakes in their Malaysian units, in deals that could raise at least a combined US$2 billion ($2.74 billion) and help them comply with foreign ownership limits, people with knowledge of the matter said.

Prudential has asked banks to pitch for a role advising on a domestic initial public offering of its Malaysian unit, an option it is considering alongside a potential stake sale to an investor, according to the people. Singapore’s Great Eastern Holdings Ltd. is also exploring cutting its local holding to 70% through a sale or IPO, the people said, asking not to be identified because the details are private.

A sale of a 30% stake in Great Eastern Life Assurance (Malaysia) Bhd. could raise about 5 billion ringgit ($1.59 billion), while the disposal of a similar stake in Prudential Malaysia Assurance Bhd. would fetch at least 3 billion ringgit, the people said. Japan’s Tokio Marine Holdings Inc. has appointed a bank to advise on options for cutting its stake in its local unit, which could raise around 1 billion ringgit, according to one of the people.

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