Dai-ichi Life Insurance Co Ltd of Japan has entered into an agreement to purchase a 40% shareholdings in Panin Life of Indonesia. The cost of the shares were pegged at 30 billion yen or US$295 million.
The move was confirmed by an anonymous source with direct information on the transaction. It was also one of the latest acquisitions conducted by one of the top four life insurance companies of Japan in the fast emerging market of Indonesia.
The deal would take a few more days as the owner PT Panin Financial and Dai-ichi is also working out the regulatory details and other local matters on the sale.
There is tremendous pressure for Dai-ichi to find new business markets for its insurance operations. It is the only one among the four life insurance companies in Japan that is listed in the Tokyo Exchange. Previous to this purchase, it was one of the unsuccessful bidders for ING Groep NV's Southeast Asian insurance operations last year.
Aside from this new shareholdings, it also has controling shareholdings in AMMB Holdlings Bhd of Malaysia, according to another source who shared the information with Reuters earlier.
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