Generali has entered into an agreement with Multi-Purpose Capital Holdings – a wholly owned subsidiary of the Malaysian group headed by MPHB Capital - to acquire a 49% stake in its P&C insurance subsidiary, Multi-Purpose Insurans (MPIB), for a consideration of €81.4 million (US$100.22 million).

 

The agreement includes a call option exercisable in two years on an additional 21% stake of MPIB, which will enable the group to increase its holding to 70% of the company’s capital, the highest amount allowed under Malaysian law for foreign companies. The transaction is substantially neutral in solvency terms.

 

Moreover, a shareholders’ agreement will allow Generali to immediately appoint some directors and key managers of the company.

 

Generali Group CEO Mario Greco commented: “Our entry into the Malaysian market marks an important step for Generali’s development in Asia, an important area for the Group’s future growth and where we are already investing. Malaysia is a market which is significantly growing and offers great opportunities, especially in the P&C segment.”

 

The transaction has been approved by the local regulator, Bank Negara Malaysia, and is subject to the approval of MPHB Capital’s shareholders.