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View all search resultsSpanish insurer MAPFRE exits Indonesian market
The company plans to sell a 62.33 percent stake in publicly listed PT Asuransi Bina Dana Arta (ABDA).
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panish insurance multinational MAPFRE SA has decided to exit the Indonesian market by selling its controlling interests in two local units.
Mapfre said on Monday it would sell a 62.33 percent stake in publicly listed PT Asuransi Bina Dana Arta (ABDA) and a 51 percent stake in joint venture PT Mapfre Abda Assistance.
The Spanish insurer sold the shares to Singapore-based Aseana Insurance Pte. Ltd, which belongs to investment funds managed or advised by Warburg Pincus LLC.
“The consideration for this transaction reaches US$62.9 million dollars, equivalent to approximately 56.6 million euros, which will generate a result net of taxes of approximately 600,000 euros,” said MAPFRE in a statement.
The definitive close of this transaction will be executed according to the terms of the contract, which includes the approval of the corresponding authorities.
MAPFRE officially entered Indonesia in 2017 by buying a 51 percent stake in ABDA through two acquisitions for a total amount of 152.59 million euros.
ABDA operates in the automobile, home, transportation, health and accident lines. MAPFRE bought into ABDA betting on the growth of domestic auto insurance demand amid the growing auto market in Indonesia.
ABDA does not expect the acquisition to disrupt the rights of policyholders, insured parties and participants, according to a filing with the Indonesia Stock Exchange (IDX) from Monday.
Aseana is slated to conduct a tender offer of the remaining shares of ABDA in accordance with Financial Services Authority (OJK) Regulation No. 9/2018. The public owns the remaining 37.67 percent of ABDA as of September 2021.
“ASEANA will observe and comply with the prevailing laws and regulations,” said ABDA.
ABDA profit rose 50.7 percent year-on-year (yoy) to Rp 116.05 billion ($8.05 million) in the January to September period of last year, according to its latest financial report. Company revenue decreased 15.2 percent to Rp 601.54 billion over the same time frame.
