Meiji Yasuda Life Insurance Co. has agreed to pay about $ 700 million to buy a 15% stake in Thai Life Insurance Co., Ltd., emphasizing the rapidly expanding economies of Southeast Asia, trading increased appetite for Japanese companies.
Meiji Yasuda's acquisition will make the acquisition of a Japanese company in Southeast Asia in the fourth financial services, so that in the region so far this year in Japan M & A transactions worth about $ 66 billion.
Rising personal incomes in Southeast Asia is to give, for the first time in many cases, individuals and families can afford to buy the insurance. This new demand, driven by stock prices and corporate valuations, culminating in a series of mergers and acquisitions.
To enter the growth, to honor the Japanese insurance companies and banks have become the Southeast Asian financial services company active buyers as they battle sluggish growth in the domestic market.
Anna tip, partnership law firm Norton Rose Fulbright said, a strong cash position of the Japanese companies and slower growth in the domestic market, to encourage them to pay top dollar transactions.
"It does not take a new look very attractive return on investment return on any money earned at home Contrast" tip.
"This means that Japan can provide a much higher price to provide Western players, who needs a return on equity over 15%, so that investment is worth more than the purchase price," she added.
Deal flow
Earlier this month, Japan's largest bank Mitsubishi UFJ Financial Group (MUFG) agreed to pay $ 560 million in Thailand, Bank of Ayudhya's controlling stake. In May, Sumitomo Mitsui Financial Group agreed to acquire in Indonesia BTPN $ $ 150 million of equity.
Other Insurance M & A deals in the region is expected to include PT Indonesian National Bank plans to sell up to 40% of the life insurance sector reached a deal estimated at around $ 800 million. BNP Paribas (BNP Paribas) is being processed for sale.
Meiji Life Insurance and Thailand announced separate statements last Friday's trading, the value of the deal were not disclosed. A separate source told Reuters correspondent, Meiji has agreed to pay about 700 million stake, confirmed a Reuters report from last month.
Meiji Yasuda, Japan's second-largest life insurance company premiums, the Nippon Life Insurance mutual cooperation, defeating Japan's Sumitomo Life Insurance Company won the auction, but also attracted private equity firm Carlyle Group (Carlyle Group) LP, KKR & Co and CVC Capital partnership.
Thai life, controlled by Thai Chaiyawan family, among the nation's top three life insurance companies in 2012 earned 124 billion baht ($ 398.65 million) premiums, up 40 percent from a year earlier.
The transaction is expected to close before the end of the year.
Barclays recommends this transaction Thai life, Thai Life Insurance said in a statement. JP Morgan recommends Meiji, previously told Reuters reporters.
 



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