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S.Africa's Sanlam to buy 51 pct in Malaysian insurer for $119 mln
April 23, 2014 / 7:16 AM / 4 years ago

S.Africa's Sanlam to buy 51 pct in Malaysian insurer for $119 mln

JOHANNESBURG, April 23 (Reuters) - South Africa’s biggest insurer Sanlam said on Wednesday it would acquire a majority stake in Malaysia’s MCIS Zurich Insurance Berhad for about 1.25 billion rand ($119 million), further expanding its footprint in the southeast Asian nation.

Sanlam said it would initially buy a 40 percent from a major shareholder, Koperasi MCIS Berhad, and another 11 percent through an offer to minority shareholders.

After the purchase, MCIS Zurich will have to dispose of its short-term insurance business as Malaysian regulations do not allow an investor to operate more than one life or general insurance licence.

Sanlam already has a short-term insurance business in Malaysia after acquiring a 49 percent share in Pacific & Orient Insurance Co. in 2013.

Sanlam, which also has operations in India and 15 African countries, has a war chest of more than $370 million for acquisitions in emerging markets this year. ($1 = 10.5448 South African Rand) (Reporting by Helen Nyambura-Mwaura; editing by David Dolan)

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