Tune Insurance eyes JV with UAE aviation firm
A tie-up is likely to provide Tune its next growth catalyst
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A PROPOSED tie-up between Malaysia's Tune Insurance Holdings Bhd (TIH) and the United Arab Emirates' (UAE) aviation group Al Hai LLC (AlHai) to explore insurance-related business activities could provide Tune its next growth catalyst should the deal materialise.
Listed TIH, up some 30 per cent year to date and currently trading at near historical highs, told the exchange this week that it had entered into a memorandum of understanding (MOU) to explore the creation of a joint-venture company with AlHai to develop and offer competitive products with a view to reinforcing AlHai's dominance in the aviation business in the UAE.
Brokers RHB Investment saw the MOU as a move by TIH to diversify away from its major partner AirAsia. Both companies are controlled by aviation tycoon Tony Fernandes and his partner Kamaruddin Meranun. The tycoons' Tune Group Sdn Bhd owns 19.4 per cent of TIH while AirAsia holds 13.7 per cent.
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