Prudential pays RM1.5 billion to raise stake in Malaysia unit to 70%

[SINGAPORE] Prudential will pay RM1.5 billion (S$483 million) in cash to increase its stake in Prudential Assurance Malaysia to 70 per cent, from 51 per cent currently, the company said on Thursday (Jan 22).

The insurer will purchase the additional 19 per cent stake in Sri Han Suria (SHS), the holding company for its Malaysian conventional life insurance unit, from local partner Detik Ria – which currently owns 49 per cent of SHS.

The transaction will leave Detik Ria with a 30 per cent stake.

Prudential said that the deal would allow it “to gain more economic benefit from SHS, while balancing commercial appetite in terms of capital outlay and increased risk profile arising from an increased stake”.

It would be accretive to the group’s earnings per share, traditional embedded value and shareholders’ equity, said Prudential.

The purchase price was determined based on SHS’ financial performance for the year ended Dec 31, 2024. During that period, the SHS Group reported a profit after tax of RM1.1 billion and a net asset value of RM9.7 billion.