Fairfax Financial Holdings has agreed to purchase 80% of Asuransi Multi Artha Guna (AMAG) to the tune of roughly $165 million, a person familiar with the matter told
Reuters.
The same informant also revealed that Goldman Sachs advised Fairfax and Barclays advised the Panin Group for the deal.
In a statement released Monday, the Canadian financial holding company announced that it would buy the stake from Paninvest and its affiliates. The deal will most likely close by the end of the year.
AMAG’s shares increased Tuesday by as much as 15.5% to $0.035, compared with just 0.7% in the broader market, reported
JakartaGlobe.
The deal is one of several other transactions in recent years that underscore foreign interest in Southeast Asia’s general insurance market.
Fairfax chairman and chief executive Prem Watsa said that the deal "a great opportunity for us to continue to expand our operations in the region."
The company further stated that it would integrate AMAG with its Indonesian subsidiary. Fairfax also said that AMAG would enter a long-term general insurance partnership with Bank Pan Indonesia.
Fairfax was flush with funds early this year and made clear then that it would use its net proceeds to—as a company statement said—“pursue potential acquisition opportunities.”
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