Sun Life Financial Inc. and Khazanah Nasional Berhad, the government of Malaysia’s strategic investment fund, are partnering to buy 98% of CIMB Aviva Assurance Berhad, a Malaysian life insurance company, and CIMB Aviva Takaful Berhad, the Takaful arm of the organization.
Sun Life and Khazanah are each acquiring 49% of the company from Aviva International Holdings Ltd. and CIMB Group Holdings Berhad (CIMB Group). CIMB Group will retain a 2% share.
Sun Life and Khazanah will have exclusive right to distribute insurance products, including Takaful products, through CIMB Bank’s 312 branch networks across Malaysia. It currently services eight million customers.
The proposed acquisition by Sun Life and Khazanah is subject to regulatory approvals in Canada and Malaysia. The transaction is expected to close by the first half of 2013.