Business

Thursday June 21, 2012

MAA mulls setting up of private equity business


KUALA LUMPUR: MAA Group Bhd is looking into the possibility of setting up a private equity business in view of the future potential of the business to the group.

Executive chairman Tunku Ya'acob Tunku Abdullah said it was currently studying the matter and looking for a suitable model for the private equity business.

“It is not easy but once you have created it, it is a good business. The private equity business has been successful in the West and in the United States but has not taken off significantly in Malaysia,'' he said after the company AGM.

If MAA were to decide to launch the private equity business, it would only be after September next year, he said adding that the proceeds from the disposal of its insurance arm Malaysian Assurance Alliance Bhd (MAA Assurance) to Zurich would be realised by September next year as it was now held in escrow.

The group is due to receive some RM200mil from an escrow agreement it made with Zurich Insurance Co Ltd by September 2013. Zurich bought MAA Assurance and three other related subsidiaries for RM344mil cash last year.

Asked whether the group was looking into acquisitions or any corporate exercise, Tunku Ya'acob said it was not at this point nor had it commenced any discussions with relevant parties.

On its performance this year, he added profits would be “respectable,” in the sense that it would not be as huge as last year's earnings due to the disposal of MAA Assurance. The group had two subsidiaries MAA Takaful Bhd and MAAKL Mutual Bhd and hence earnings would be lower, he said, noting that the soon-to-be-disposed loss-making subsidiary in Indonesia would see profits coming in this year.


MAA : [Stock Watch] [News]

  • E-mail this story
  • Print this story
  • Bookmark and Share