Sale of SCB insurance unit to FWD haltedJuly 7 2017 by InsuranceAsia News Staff
What could have been the largest insurance M&A transaction in South-East Asia is no longer pushing through, according to a Reuters report.
This, after Thailand’s Siam Commercial Bank (SCB) halted the sale of its insurance unit, which was expected to fetch US$3 billion.
The report said SCB, Thailand’s third-biggest lender, and potential bidder FWD Group failed on valuation agreements.
FWD, owned by Hong Kong tycoon Richard Li, the youngest son of Li Ka-shing, entered into exclusive talks in March, sources said.
It was not immediately clear if the Thai bank will relaunch the sale in the near future, although it said in April that it will reach out to other bidders should its negotiations with the FWD Group not push through.
Among those who expressed interest in SCB’s insurance unit are AIA, Manulife and Prudential.
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The change for life insurance JVs is proposed in the latest draft regulatory amendments under consideration.
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Dwindling sales of savings-type products and weaker investment returns are reducing income.
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Linked policies recorded the highest growth, up 82% from the same period last year.
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Shareholders will carry out a detailed evaluation of shortlisted bidders over the next couple of weeks.