The Board of Directors (“Board”) of AMMB wishes to announce that AmGeneral Holdings Berhad (“AGHB”), a 51%-owned subsidiary of AMMB, has on 19 July 2021, entered into an Implementation Agreement with LIB whereby AGHB will dispose its wholly-owned subsidiary, AGIB, to LIB for approximately RM2,290 million (subject to adjustments), to be satisfied via a combination of cash and shares in LIB (“Proposed Disposal”).

The Proposed Disposal is subject to regulatory approvals. Contingent on receiving the said approvals, AGHB and LIB will, inter alia, execute a share purchase agreement under which:

(a)       LIB will acquire 100% equity stake in AGIB from AGHB for approximately RM2,290 million (subject to adjustments); and

(b)       AMMB’s share of proceeds from the Proposed Disposal will be satisfied via a combination of cash and shares, which will result in AMMB holding a 30% interest in the LIB and AGIB businesses.  

Upon completion of the Proposed Disposal, AMMB and Liberty Mutual Insurance Company (the parent company of LIB) will hold a 30% and a 70% equity stake respectively in LIB and AGIB. AMMB will be accounting for the Proposed Disposal as a disposal of subsidiary and, subsequently, will account for the 30% retained interest in LIB and AGIB as an associate undertaking.

The Proposed Disposal will also see AMMB Group entering into a 20-year new bancassurance partnership.

Further details on the Proposed Disposal will be announced in due course.

This announcement is dated 19 July 2021.