PacificMas Bhd has signed a share sale agreement to sell its entire equity interest in The Pacific Insurance Bhd (PIB) to Fairfax Asia Ltd.
The stake will be sold for RM201mil in cash plus PIB's incremental net tangible assets (NTA) from Dec 31, 2008 to the month end immediately after the date the agreement becomes unconditional or another date as the parties may agree.
PacificMas told Bursa Malaysia that based on PIB's latest audited NTA of RM126.4mil as at Dec 31, 2009, the incremental NTA amounted to RM6.52mil.
The agreement is conditional on the approval of the shareholders of PacificMas.
It said the board proposed to distribute the proceeds from the disposal to shareholders, except for RM3.5mil which would be used to defray estimated expenses relating to the disposal and for working capital.
The board, except for Datuk Ahmad Zahudi Salleh who is a nominee director of Koperasi Angkatan Tentera Malaysia Bhd, decided that the proposed disposal was in the best interest of the company and the shareholders, it said.
Koperasi Angkatan Tentera has a 16.44% direct shareholding in PacificMas.
PacificMas expected the exercise to be completed by the first quarter of 2011. Last month, the company received the approval of Finance Ministry through Bank Negara for the proposed disposal.
FAIRFAX News Release Stock Symbol: TSX (FFH and FFH.U) TORONTO, December 3, 2010
FAIRFAX TO ACQUIRE MALAYSIAN INSURER Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) announced today that it has entered into a share purchase agreement pursuant to which it will acquire all of the shares of Malaysian insurer, The Pacific Insurance Berhad, for approximately US$64 million. Subject to the approval of the shareholders of the vendor, PacificMas Berhad, the transaction is expected to close in the first quarter of 2011.
"We are looking forward to having Pacific Insurance Berhad, one of Malaysia’s premier insurers, join the Fairfax family," said Prem Watsa, Chairman and CEO. "Pacific has a strong presence in the Malaysian insurance sector and we look forward to working with Pacific’s excellent management team, led by its Chief Executive Officer Sonny Tan Siew Hock, to further develop their business and products."
Pacific provides all classes of general insurance and is known for being a pioneer and a quality provider of medical insurance in Malaysia. Pacific is headquartered in Kuala Lumpur and was established in the 1950s when it was the Malaysian business arm of The Netherlands Insurance Company, then the 12th largest insurance company in the world. On closing, Pacific will join the Fairfax Asia group under the oversight of Fairfax Asia’s CEO, Mr. Ramaswamy Athappan.
Pacific has approximately RM120 million in its shareholder fund. The company has a national network across Malaysia with 18 branches, over 200 employees and an agency force of approximately 1,200 agents.
Fairfax is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.
For further information contact: John Varnell, Chief Financial Officer, at (416) 367-4941
Paul Rivett, Chief Legal Officer, at (416) 367-4941
FAIRFAX FINANCIAL HOLDINGS LIMITED 95 Wellington Street West, Suite 800, Toronto Ontario M5J 2N7 Telephone 416/367 4941 Telecopier 367 4946