PETALING JAYA: Malaysia noticed 31 merger and acquisition (M&A) transactions involving monetary providers firms value US$1.63bil (RM6.88bil) final 12 months after a “hunch” in 2020, based on KPMG in a report.
“Whereas M&A exercise skilled a minor ‘hunch’ in 2020, we noticed a gradual rebound throughout all sectors in 2021 that may be attributed to delayed closings and stronger investor confidence,” mentioned KPMG Advisory head Chan Siew Mei in an announcement.
“We anticipate this momentum to proceed by 2022 at the same time as Malaysia transitions to the endemic section from April 1.”
One instance was the latest transaction that noticed Affin Financial institution Bhd promote its controlling stake in AffinHwang Asset Administration Bhd for US$367mil (RM1.55bil) to Luxembourg-based non-public fairness fund CVC Capital Companions.
“This continued curiosity bode nicely for unit belief funds and Islamic funds, which have traditionally seen vital development available in the market,” Chan mentioned.
For example the rise in transactions final 12 months, KPMG famous the US$856mil (RM3.61bil) deal of native insurance coverage firms by Italy’s Assicurazioni Generali and America’s Liberty Mutual Insurance coverage Firm.
“This sector would possibly see extra consolidation, notably within the acquisition of Malaysian insurers by overseas multinationals, as world insurers proceed to hunt growth of their operations by cross-border M&A,” she mentioned.
Malaysia’s monetary expertise (fintech) and digital banking sectors have additionally benefited from the uptick in M&A exercise, fueled by the excessive fee of digital adoption and elevated utilization of e-wallets.
BigPay, the fintech unit of AirAsia Digital, raised US$100mil (RM422mil) whereas South Korean conglomerate SK Group and FAVE, an eCommerce and loyalty platform had been acquired by service provider commerce platform Pine Labs for US$45mil (RM189mil).
There may be additional motion throughout the monetary providers sector as Financial institution Negara is about to concern as much as 5 digital banking licenses by the tip of this month.
The groundwork for the digital licenses is being laid, which can enable insurance coverage firms to supply services and products by the digital channels solely with out having bodily or offline contact factors, based on KPMG.