Malaysia’s monetary companies sector noticed 31 M&A value US$1.63bil in 2021

KUALA LUMPUR: Mergers and acquisition (M&A) actions in Malaysia rebounded in 2021 after a minor stoop within the previous 12 months, with a complete of 31 disclosed transactions value US$1.63 billion recorded, stated KPMG Malaysia.

It stated that for the reason that pandemic, Malaysia’s enterprise panorama has undergone important modifications as companies sought to re-examine and optimize their company portfolios within the pursuit of development and restoration.

Head of advisory, Chan Siew Mei stated M&A actions elevated throughout all sectors in 2021 as a consequence of delayed closings and stronger investor confidence.

“We anticipate this momentum to proceed by way of 2022 whilst Malaysia transitions in direction of the endemic section starting April 1,” she stated in an announcement right now.

Latest high-value transactions embrace the US$367 million (US$1=RM4.21) deal within the asset administration subsector, the place Affin Financial institution Bhd agreed to switch its controlling stake in Affin Hwang Asset Administration Bhd to Luxembourg-based non-public fairness fund, CVC Capital Companions.

“This continued curiosity may bode properly for unit belief funds and Islamic funds, each of which have seen important development out there,” she stated.

Chan stated the insurance coverage subsector has additionally seen important development, recording important offers value US$856 million in 2021 following acquisitions of native insurance coverage corporations by Italy’s Assicurazioni Generali and America’s Liberty Mutual Insurance coverage Firm.

“This sector may see extra consolidation, significantly within the acquisition of Malaysian insurers by international multinationals, as international insurers proceed to hunt growth of their operations by way of cross border M&A,” she added.

Malaysia’s monetary expertise (fintech) and digital banking sectors additionally noticed an uptick in M&A exercise, fueled by the excessive fee of digital adoption and elevated utilization of e-wallets, stated KPMG Malaysia.

It cited AirAsia Digital’s fintech unit, BigPay, which had raised US$100 million in financing from the South Korean conglomerate, SK Group, in addition to service provider commerce platform Pine Labs’s acquisition of Fave, an e-commerce and loyalty platform for US$45 million.

In the meantime, KPMG Malaysia additionally famous that Financial institution Negara Malaysia is ready to difficulty as much as 5 digital banking licenses by the top of this month.

It stated the 29 candidates for the digital banking license included a number of digital banking consortiums, comprising banks and non-bank corporations.

The central financial institution can be at the moment laying the groundwork for the issuance of digital insurer licenses, which might enable insurance coverage corporations to supply services purely by way of digital channels with out having bodily or offline contact factors.

“Now we have already seen some notable M&A offers to this point inside the FS sector, and we will count on discerning companies to grab additional M&A alternatives inside this sector.

“Buyers are extra assured now in planning for the long-term, and we anticipate extra thrilling prospects will come up within the years to return,” stated Chan. – Bernama


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