AMMB eyes Friends Life stakes after BNM nod
"AMMB remains committed to the continued growth of AmLife and AmTakaful."
KUALA LUMPUR: AMMB Holdings Bhd has received the green light from Bank Negara Malaysia to commence negotiations with Friends Life FPL Ltd for the proposed repurchase of the 30 per cent stake held by Friends Life in each of two joint ventures, namely AmLife Insurance Bhd and AmFamily Takaful Bhd.
"The proposed repurchase allows both AMMB and Friends Life to pursue separate strategies to enhance their respective businesses," said AMMB chairman Tan Sri Azman Hashim.
The repurchase will also allow AMMB to focus on opportunities unique to its business model, said group managing director Ashok Ramamurthy.
"Notwithstanding this, Friends Life will continue to provide technical support to AmLife and AmTakaful over an agreed period of time," he added.
It is unsure how much AMMB will pay for the 30 per cent stake.
Friends Life's joint venture partnership with AmBank Group started in late 2008 when it acquired a 30 per cent stake in AmLife for about STG30 million (RM147 million).
The joint venture subsequently extended to family takaful in December 2011, with a further investment by Friends Life of a 30 per cent stake in AmTakaful.
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