Thursday, October 7, 2010

Jerneh Asia inks deal to sell Jerneh Insurance to ACE for RM532.3m

Kuala Lumpur: After ten months of bidding process, JERNEH ASIA BHD [] (JAB) has finally inked the deal to sell off their 80% stake in Jerneh Insurance Bhd (JIB) for RM532.3 million to ACE INA International Holdings.

The sum was arrived on a willing-buyer-willing seller bass through a bidding process that also saw other potential buyers eyeing the lucrative general insurance business.

"ACE had simply offered the better price," said JAB chairman Datuk Lim Chee Wah in a media briefing on Thursday, Oct 7. However, he declined to reveal the other bidders.

The total price of the disposal is RM654 million, with JAB receiving RM523.3 million for its 80% stake. The remaining 20% stake is held by Paramount Global Assets Sdn Bhd, which would receive RM130.8 million from the sale.

Lim said that shareholders would enjoy parts of the proceeds in the form of a special dividend.

"As to the quantum, we would need to balance out how much is to be paid out as special dividends and how much is required to be kept so the company is in a good cash position to explore new core businesses," he said.

As for the potential new core businesses, he said JAB would not rush, and instead take its time to evaluate any proposals.


No comments:

Post a Comment