The ACE Group announced that it has “received approval from Malaysia’s financial regulator, the Minister of Finance, through Bank Negara Malaysia, to acquire Jerneh Insurance Berhad, a general insurance company that is majority owned by Jerneh Asia Berhad, an investment holding company listed on the Kuala Lumpur Stock Exchange.”
The bulletin said ACE and the sellers expect to execute a definitive agreement shortly.
The proposed acquisition price is approximately $$200 million, subject to adjustment to reflect the book value of Jerneh Insurance Berhad at the transaction’s closing.
“This transaction provides a good strategic fit and complements our current presence in Malaysia,” noted Evan G. Greenberg, ACE Chairman and CEO. “The addition of Jerneh Insurance Berhad will be accretive to ACE’s earnings and book value per share and will meet our return-on-capital hurdle rate.”
The transaction is expected to close during the fourth quarter of 2010, subject to seller shareholder approvals and other closing conditions. The company will provide greater detail once the definitive agreement has been executed.
Source: ACE Group
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